Micro

Consumer Behaviour

Medium

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:

(A), (C) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(A), (B) and (D) only

✅ Correct Option: 4

Option 1 -> Includes (C) which is incorrect as indifference curves represent positive utility levels, not negative utility.

Option 2 -> Includes (C) which is incorrect as indifference curves do not reflect negative utility.

Option 3 -> Includes (C) which is incorrect. Indifference curves show combinations of goods providing equal satisfaction, not negative utility.

Option 4 -> Correctly includes (A), (B), and (D) only, excluding (C).

Hence, Option 4: (A), (B) and (D) only -> Statement (A) is correct because indifference curves slope downward from left to right due to the trade-off between two goods while maintaining constant utility. Statement (B) is correct as higher indifference curves (farther from origin) represent greater satisfaction levels. Statement (D) is correct because non-intersection is a fundamental property ensuring consistency in preferences - if curves intersected, the same bundle would yield two different utility levels, violating transitivity. Statement (C) is incorrect because indifference curves represent positive utility levels showing combinations that provide equal satisfaction, not negative utility. -> correct

2022: 15 July Shift 2

Budget set of a consumer is defined as:

2026: 13 May Shift 1

Suppose Prachi buys 30 bananas when its price is Rs. 10 per banana. When the price increases to Rs. 14 per banana, she reduces her demand to 24 bananas. What is the price elasticity of demand in absolute terms?

2022: 19 July Shift 2

The price and quantity at a point on the demand curve of a good are given as 10 and 50 respectively. If the price is changed to 6 and as a result quantity changes to to 65, how do you explain the change.

2025: 22 May Shift 1

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

2025: 21 May Shift 1

The equation of demand curve of a good for a consumer is given to be $p\times q = e$ where e is a constant. What will be the shape of the demand curve?

2025: 13 May Shift 1

Find the correct statement/statements.

(A) Goods which are consumed together are called complementary goods.

(B) The market demand curve can be derived as a vertical summation of the individual demand curves.

(D) If the consumer's preferences change in favor of a good, the demand curve for such a good shifts leftward.

Choose the correct answer from the options given below:

Solution

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CUET Economics Past Year Questions (Topic-Wise)