If due to fall in price, total expenditure on the commodity falls, it indicates? Option 1: price elasticity of demand is zero. Option 2: price elasticity of demand is less than unity. Option 3: price elasticity of demand is infinity. Option 4: price elasticity of demand is greater than unity.

The answer is 'price elasticity of demand is less than unity.'. View full solution:

CUET Economics - If due to fall in price, total expenditure on the commodity falls, it indicates? | PYQs + Solutions

CUET Economics 2025 2 June Shift 1

Micro

Medium

price elasticity of demand is zero.

price elasticity of demand is less than unity.

price elasticity of demand is infinity.

price elasticity of demand is greater than unity.

✅ Correct Option: 2

Related questions:

31 May Shift 1

The wage rate at which the labour market is in equilibrium is a point where.

Labour demand=0
Labour Demand= Labour Supply
Labour Supply=Labour Demand=0
Wages= Marginal Revenue from labour x Price

22 May Shift 2

Arrange the following in correct sequence, to correct the problem of mismatch between supply and demand forces:

(A) There is excess demand in the market.

(B) All other things remain the same as price rises, quantity demanded falls and quantity supplied increases.

(C) Some consumers who are either unable to obtain the commodity at all or obtain it in insufficient quantity will be willing to pay more than the prevailing prices.

(D) The market moves towards the point where the quantity that the firms want to sell is equal to the quantity that the consumers want to buy.

Choose the correct answer from the options given below:

15 May Shift 1

If price of a commodity rises from Rs. 10 to Rs. 15, its supply increases by 20%.

calculate the price elasticity of supply for this commodity.

CUET Economics 2025 2 June Shift 1 PYQs

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