CUET Economics 2025 27 May Shift 2 PYQs

If the budget line is tangent to an indifference curve at a point, absolute value of the MRS and the Budget line are __________ at that point.

How would the decrease in the price of Good-X impact the budget line, when the price of Good-Y and Income remain unchanged?

1. The intercept points of both Good-X and Good-Y will shift outward.
2. The intercept point of Good-X will shift outward and the intercept point of Good-Y will remain unchanged.
3. The intercept point of Good-X will shift inward and the intercept point of Good-Y will remain unchanged.
4. The intercept points of both Good-X and Good-Y will shift inward.

How will an increase in the consumer's income affect the budget line?

1. Parallel inward shift of budget line.
2. Parallel outwards shift in budget line.
3. The budget line rotates outwards.
4. Budget line rotates and shifts outwards.