CUET Economics - 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. | PYQs + Solutions

CUET Economics 2025 31 May Shift 1

Micro

Easy

Parallel inward shift of budget line.

Parallel outwards shift in budget line.

The budget line rotates outwards.

Budget line rotates and shifts outwards.

✅ Correct Option: 2

Related questions:

30 May Shift 2

Match List-I with List-II

List-I	List-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:

31 May Shift 1

The equation of the demand curve : pq = e, where e is a constant.

Select the INCORRECT statement:

The demand curve is a rectangular hyperbola.
The value of p times q is constant.
The elasticity of demand at all points located on this demand curve is greater than 1.
At every point of consumption, the expenditure remains the same.

15 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Budget Set	(I) $-(P_1/P_2)$
(B) Slope of the budget line	(II) $M/P_1$
(C) Horizontal intercept of the budget line	(III) $P_1 X_1 + P_2 X_2 \le M$
(D) Vertical intercept of the budget line	(IV) $M/P_2$

Choose the correct answer from the options given below:

CUET Economics 2025 31 May Shift 1 PYQs