CUET Economics 2025 3 June Shift 1 PYQs

Which among the following are the features of the indifference curve?

(A) Indifference curve slopes downwards from left to right.

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

(C) Indifference curve reflects negative utility.

(D) Two indifference curves never intersect each other.

Choose the correct answer from the options given below:

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.

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