CUET Economics 2026 13h May Shift 2 PYQs

The equation of the demand curve : pq = e, where e is a constant.

Select the INCORRECT statement:

1. The demand curve is a rectangular hyperbola.
2. The value of p times q is constant.
3. The elasticity of demand at all points located on this demand curve is greater than 1.
4. At every point of consumption, the expenditure remains the same.

If ratio between the change in price & change in quantity demanded is 0.25. The consumer demands 100 units at an initial price of Rs 10 per unit. Calculate the price elasticity of demand.

Find the value of price elasticity of demand of a good whose demand decreases by 20% for an increase in its price of 10%.