Micro

Consumer Behaviour

Medium

Elasticity of demand is constant and equal to 1 at every point on the demand curve. The shape of such a demand curve would be :

Horizontal straight line

Vertical straight line

Downward sloping curve

Rectangular hyperbola

✅ Correct Option: 4

A demand curve with constant unitary elasticity at every point takes the shape of a rectangular hyperbola. Along it, total expenditure ( $P \times Q$ ) remains constant because any price change is exactly offset by an equal proportional change in quantity demanded.

2025: 3 June Shift 1

On the basis of given data, the slope of the price line will be _________

2025: 26 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Decrease in consumer's income	(I) Budget line becomes steeper
(B) Increase in price of Good X	(II) Parallel and leftward shift in the budget line
(C) Equal reduction in price of both goods X and Y	(III) Budget line becomes flatter
(D) Increase in price of Good Y	(IV) No change in the slope of the budget line

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Identify the factors of price elasticity of demand.

(A) Nature of Goods.

(B) Availability of Substitution.

(D) Cost of Goods.

Choose the correct answer from the options given below:

2025: 3 June Shift 1

In a situation when MRSxy > Px / Py, the consumer would react by:

2026: 15 May Shift 1

Suppose the price elasticity of demand for a good is –0.2. How will the demand for the good be affected if there is a 10% increase in the price of the good?

2025: 29 May Shift 2

The optimum bundle of the consumer is located at the point where..................?

Elasticity of demand is constant and equal to 1 at every point on the demand curve. The shape of such a demand curve would be :

Solution

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