CUET Economics 2025 28 May Shift 2 PYQs

Which of the following statements are correct:

(A) Consumer's preferences are monotonic: If and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle.

(B) The tendency for the MRS to fall with increase in quantity of goods is known as the Law of Diminishing Marginal Rate of Substitution.

(C) A decrease in income causes a parallel outward shift of the budget line.

(D) The budget set is the collection of all bundles that the consumer can buy with their income at the prevailing market prices.

Choose the correct answer from the options given below:

Arrange the following statements showing the change in budget set due to change in income.

(A) The equation of the budget line is $P_1 X_1 + P_2 X_2 = M'$.

(B) Consumer's income increases from $M$ to $M'$, but the price of goods remains constant.

(C) The set of available bundles depends upon prices and the income of the consumer.

(D) Consumers can buy more of the goods at the prevailing market prices.

Choose the correct answer from the options given below:

Which of the following conditions of the indifference curve is violated when two indifference curves are intersecting each other?