When Elasticity of Demand Curve is 1 at every point on the Demand Curve, this curve is known as: Option 1: Perfectly inelastic demand curve Option 2: Perfectly elastic demand curve Option 3: Rectangular Hyperbola Option 4: Greater than unitary demand curve

Answer: Rectangular Hyperbola. Solution: Key concept -> elasticity measures responsiveness -> of demand to price changes. Perfectly inelastic demand -> no change in demand Perfectly elastic demand -> infinite change in demand Rectangular Hyperbola -> constant product of price and quantity Greater than unitary demand -> highly responsive demand Answer is Rectangular Hyperbola -> unique shape where elasticity is 1.

Micro

Consumer Behaviour

Easy

When Elasticity of Demand Curve is 1 at every point on the Demand Curve, this curve is known as:

Perfectly inelastic demand curve

Perfectly elastic demand curve

Rectangular Hyperbola

Greater than unitary demand curve

✅ Correct Option: 3

Key concept -> elasticity measures responsiveness -> of demand to price changes.

Perfectly inelastic demand -> no change in demand
Perfectly elastic demand -> infinite change in demand
Rectangular Hyperbola -> constant product of price and quantity
Greater than unitary demand -> highly responsive demand

Answer is Rectangular Hyperbola -> unique shape where elasticity is 1.

2026: 11 May Shift 1

Suppose the consumer have 15 rupees to spend on purchasing two goods namely $x_1$ and $x_2$ where the price of $x_1$ is 2.50 and price of $x_2$ is 1.50 then what is the maximum quantity of $x_1$ and $x_2$ at which the consumer's budget line will intersect the axis of the graph if $x_1$ and $x_2$ are represented in the vertical axis and horizontal axis of the graph respectively.

2025: 21 May Shift 1

The equation of demand curve of a good for a consumer is given to be $p\times q = e$ where e is a constant. What will be the shape of the demand curve?

2025: 27 May Shift 2

The total sum that the consumer has to spend on wheat in 2025?

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

Match List-I with List-II

List-I	List-II
(A) Demand function	(I) Change in total utility due to consumption of one additional unit of a commodity.
(B) Indifference curves	(II) The relation between the consumer's optimal choice of the quantity of a good and its price.
(C) Marginal utility	(III) The level of utility that can be expressed in numbers.
(D) Cardinal utility	(IV) Never intersect each other.

Choose the correct answer from the options given below:

2026: 6 June Shift 1

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

When Elasticity of Demand Curve is 1 at every point on the Demand Curve, this curve is known as:

Solution

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