Micro

Consumer Behaviour

Easy

Given the consumer's income and preferences, if the price of tea increases, the demand curve for coffee will ?

Move leftward.

Shifts leftward.

Move rightward.

Shifts rightward.

✅ Correct Option: 4

Tea and coffee are substitute goods. A rise in the price of tea induces consumers to demand more coffee at every price of coffee. Since the change is caused by the price of a related good (not coffee's own price), the entire demand curve for coffee shifts rightward; a movement along the curve occurs only for own-price changes.

2026: 15 May Shift 1

Suppose the price elasticity of demand for a good is –0.2. How will the demand for the good be affected if there is a 10% increase in the price of the good?

2023: 11 June Shift 3

A Consumer's total utility level being the same, the amount of good 'X' that the consumer has to forego, in order to get an additional unit of good Y is termed as :

2025: 3 June Shift 1

How much of Good X can the consumer consume if she spends her entire income on that good?

2025: 13 May Shift 1

Budget Set is __________

2025: 26 May Shift 2

A consumer spends all his income of Rs 6000 on two goods - Food and clothing and is buying 12 units each of both the goods. At the present level of consumption, the marginal rate of substitution of clothing for food is 3. The price of food per unit is Rs. 400 whereas that of clothing is Rs. 100. What should a consumer do to attain the equilibrium?

2022: 15 July Shift 2

Budget set of a consumer is defined as:

Given the consumer's income and preferences, if the price of tea increases, the demand curve for coffee will ?

Solution

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