CUET Economics 2026 20th May Shift 1 PYQs

Arrange the following statements showing the change in budget set due to change in income.

(A) The equation of the budget line is $P_1 X_1 + P_2 X_2 = M'$.

(B) Consumer's income increases from $M$ to $M'$, but the price of goods remains constant.

(C) The set of available bundles depends upon prices and the income of the consumer.

(D) Consumers can buy more of the goods at the prevailing market prices.

Choose the correct answer from the options given below:

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

Which of the following are true about indifference curves?

(A) All the points lying on an indifference curve provide the consumer with different levels of satisfaction.

(B) Indifference curves are convex to the origin due to law of Diminishing Marginal Rate of Substitution.

(C) Higher indifference curve gives greater level of utility.

(D) In the case of perfect substitutes, indifference curves are straight lines.

Choose the correct answer from the options given below: