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CUET Economics 2025 PYQs28 May Shift 1. Free, no login required.

Micro

past year questions, CUET Economics 2025 28 May Shift 1

Consumer Behaviour

past year questions, Micro, CUET Economics 2025 28 May Shift 1

Medium

Why indifference curves are convex to origin?

  1. Due to the constant market rate of exchange.
  2. Due to the increasing marginal rate of substitution.
  3. Due to the constant marginal rate of substitution.
  4. Due to a diminishing marginal rate of substitution.

Solution

✅ Correct Option: 4

Option 1 -> Market rate of exchange relates to market conditions, not consumer preferences or the shape of indifference curves.

Option 2 -> Increasing MRS would make indifference curves concave to the origin, not convex.

Option 3 -> Constant MRS would result in straight-line indifference curves, not convex curves.

Option 4 -> Diminishing MRS means consumers are willing to give up less of one good to obtain additional units of another good, creating the convex shape.

Hence, Option 4: Due to a diminishing marginal rate of substitution -> The convex shape of indifference curves reflects the principle of diminishing marginal rate of substitution (MRS). As a consumer consumes more of good X and less of good Y, they value the remaining units of good Y more highly and are willing to sacrifice fewer units of Y for additional units of X. This diminishing willingness to substitute causes the indifference curve to bow inward toward the origin, creating the characteristic convex shape. The slope of the indifference curve (MRS) becomes flatter as we move along the curve from left to right, demonstrating this diminishing rate. -> correct

Related questions:

2025: 28 May Shift 2

Choose the correct statements in the context of the law of diminishing marginal utility

(A) States that each successive unit of a commodity provides lower marginal utility.

(B) States that each successive unit of a commodity provides higher marginal utility.

(C) Explains why demand curves have a negative slope.

(D) States that the marginal utility from consuming each additional unit of a commodity declines as its consumption increases, while keeping consumption of other commodities constant.

Choose the correct answer from the options given below:

2025: 29 May Shift 1

Which of the following can shift the demand curve to the right?

(A) Increase in the income of the consumer (For normal goods).

(B) Decrease in the price of complementary goods.

(C) Increase in the price of substitute goods.

(D) Increase in the price of goods.

Choose the correct answer from the options given below:

2023: 29 May Shift 2

Elasticity of Demand is given by the formula.

2025: 28 May Shift 1

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.

2025: 13 May Shift 1

Find the correct statement/statements.

(A) Goods which are consumed together are called complementary goods.

(B) The market demand curve can be derived as a vertical summation of the individual demand curves.

(C) Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in its price.

(D) If the consumer's preferences change in favor of a good, the demand curve for such a good shifts leftward.

Choose the correct answer from the options given below:

2025: 30 May Shift 2

Match List-I with List-II

List-IList-II
(A) Substitution effect stronger than the income effect(I) Inferior goods
(B) Income effect stronger than the substitution effect(II) Complementary goods
(C) Demands and income move opposite direction(III) Normal goods
(D) Goods consumed together(IV) Giffen goods

Choose the correct answer from the options given below:

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