Micro

Consumer Behaviour

Easy

Elasticity of Demand is given by the formula.

$\frac{Q}{\Delta Q} \times \frac{P}{\Delta P}$

$\frac{\Delta Q}{Q} \times \frac{P}{\Delta P}$

$\frac{\Delta P}{P} \times \frac{\Delta Q}{Q}$

$\frac{\Delta Q}{P} \times \frac{Q}{P}$

✅ Correct Option: 2

Price elasticity of demand is defined as percentage change in quantity divided by percentage change in price: $e_d = \frac{\Delta Q / Q}{\Delta P / P} = \frac{\Delta Q}{Q} \times \frac{P}{\Delta P}$ . This matches option 2.

2025: 27 May Shift 2

What is Consumer Price Index?

2025: 13 May Shift 2

Which among the following are the features of the indifference curve?

(A) Indifference curve slopes downwards from left to right.

(B) Higher indifference curve gives greater level of utility.

(D) Two indifference curves never intersect each other.

Choose the correct answer from the options given below:

2025: 15 May Shift 1

Which of the following will NOT cause a change in the budget set of a consumer?

2025: 13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Satisfaction derived from consuming the given amount of some commodity x.	(I) Marginal rate of substitution.
(B) Change in total utility due to consumption of one additional unit of a commodity.	(II) Ordinal Utility
(C) Ranking of various consumption bundle.	(III) Marginal Utility
(D) Downward slope of indifference curve.	(IV) Total Utility

Choose the correct answer from the options given below:

2025: 22 May Shift 2

The rate at which the consumer is willing to substitute one good for the other is indicated by:

2025: 26 May Shift 2

A consumer spends all his income of Rs 6000 on two goods - Food and clothing and is buying 12 units each of both the goods. At the present level of consumption, the marginal rate of substitution of clothing for food is 3. The price of food per unit is Rs. 400 whereas that of clothing is Rs. 100. What should a consumer do to attain the equilibrium?

Elasticity of Demand is given by the formula.

Solution

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