Micro

Consumer Behaviour

Medium

The total expenditure on a commodity rises from Rs.100 to Rs.150 as a result of an increase in the price of the commodity from Rs. 10 to Rs.15. Find out the elasticity of demand of this commodity by percentage method.

Zero (0)

0.5

0.2

✅ Correct Option: 2

Initial quantity $= \frac{100}{10} = 10$ units; new quantity $= \frac{150}{15} = 10$ units. Quantity demanded is unchanged, so percentage change in quantity is 0 while price rises by 50%.

$e_d = \frac{\%\Delta Q}{\%\Delta P} = \frac{0}{50} = 0$ . Demand is perfectly inelastic.

2025: 28 May Shift 1

Which of the following would appropriately define a budget set?

2025: 22 May Shift 2

Which goods are represented by a straight line Indifference Curve?

2025: 3 June Shift 1

Increase in the income of buyers (in case of inferior goods) will cause _________

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: 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:

2025: 22 May Shift 2

The optimum bundle of the consumer is located at the point where:

The total expenditure on a commodity rises from Rs.100 to Rs.150 as a result of an increase in the price of the commodity from Rs. 10 to Rs.15. Find out the elasticity of demand of this commodity by percentage method.

Solution

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