CUET Economics 2025 28 May Shift 2 PYQs

Which of the following are true about indifference curves?

(A) All the points lying on an indifference curve provide the consumer with different levels of satisfaction.

(B) Indifference curves are convex to the origin due to law of Diminishing Marginal Rate of Substitution.

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

(D) In the case of perfect substitutes, indifference curves are straight lines.

Choose the correct answer from the options given below:

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:

The price of a commodity increases by 10%, its demand drops by 12%. What is the nature of price elasticity of demand?