Micro

Consumer Behaviour

Medium

If ratio between the change in price & change in quantity demanded is 0.25. The consumer demands 100 units at an initial price of Rs 10 per unit. Calculate the price elasticity of demand.

(-) 0.025

(-) 0.040

(-) 0.40

(-) 0.25

✅ Correct Option: 3

Given: $\Delta P/\Delta Q = 0.25$ , so $\Delta Q/\Delta P = 1/0.25 = 4$ . Initial price P = 10, quantity Q = 100.

Price elasticity of demand = $(\Delta Q/\Delta P) \times (P/Q)$

= $4 \times (10/100)$

= $4 \times 0.1 = 0.40$

Since demand curve slopes downward, $E_d = -0.40$ .

2025: 13 May Shift 1

The relation between the consumer's optimal choice of the quantity of a good and its price is called ?

2026: 13 May Shift 1

Suppose Prachi buys 30 bananas when its price is Rs. 10 per banana. When the price increases to Rs. 14 per banana, she reduces her demand to 24 bananas. What is the price elasticity of demand in absolute terms?

2026: 6 June Shift 1

Level of utility that can be expressed in numbers is called?

2025: 22 May Shift 1

Match List-I with List-II

List-I	List-II
(A). The level of utility can be expressed in numbers.	(I). Total Utility
(B). The change in total utility due to consumption of one additional unit of a commodity.	(II). Ordinal Utility
(C). The total satisfaction derived from consuming the given amount of some commodity.	(III). Cardinal Utility
(D). The level of utility can be expressed in ranks.	(IV). Marginal Utility

Choose the correct answer from the options given below:

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Cardinal utility	(I) Ranking consumption bundles.
(B) Perfect substitute goods	(II) Level of utility can be expressed in numbers.
(C) Ordinal Utility	(III) The marginal Rate of Substitution is 1.
(D) Complimentary goods	(IV) An increase in the price of one good does not lead to an increase in demand for another good.

Choose the correct answer from the options given below:

(A) - (I), (B) - (IV), (C) - (III), (D) - (II)
(A) - (II), (B) - (III), (C) - (I), (D) - (IV)
(A) - (I), (B) - (IV), (C) - (II), (D) - (III)
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

2025: 3 June Shift 1

On the basis of given data above, the correct equation of price line will be.

If ratio between the change in price & change in quantity demanded is 0.25. The consumer demands 100 units at an initial price of Rs 10 per unit. Calculate the price elasticity of demand.

Solution

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