Increase in the income of buyers (in case of inferior goods) will cause _________ Option 1: Fall in equilibrium price and quantity. Option 2: Rise in equilibrium price and quantity. Option 3: Fall in equilibrium price and quantity to rise. Option 4: Rise in equilibrium price and quantity to fall.

The answer is 'Fall in equilibrium price and quantity.'. View full solution:

CUET Economics - Increase in the income of buyers (in case of inferior goods) will cause _________ | PYQs + Solutions

CUET Economics 2025 3 June Shift 1

Micro

Medium

Fall in equilibrium price and quantity.

Rise in equilibrium price and quantity.

Fall in equilibrium price and quantity to rise.

Rise in equilibrium price and quantity to fall.

✅ Correct Option: 1

Related questions:

CUET Economics 27 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Consumer's income changes, but prices remain unchanged. The equation of the budget line.	(I) p₁ x₁ + p₂ x₂ = M'
(B) Marginal Rate of Substitution (MRS)	(II) p'₁ x₁ + p₂ x₂ = M
(C) The price of a commodity changes, but income remains unchanged. The equation of the budget line.	(III) Δ Y/ΔX
(D) Total Utility	(IV) $MU₁ + MU₂ + ... + MU_{n-1} + MU_n$

Choose the correct answer from the options given below:

CUET Economics 29 May Shift 1

Arrange the following stages of Consumer's Equilibrium in the correct sequence under the utility analysis

(A) Marginal Utility becomes equal to the price of a commodity

(B) Marginal utility, derived from a commodity X is greater than Px

(D) The consumer reallocates expenditure to maximize satisfaction.

Choose the correct answer from the options given below:

CUET Economics 28 May Shift 2

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.

(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.

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CUET Economics 2025 3 June Shift 1 PYQs

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