Micro

Consumer Behaviour

Medium

The expenditure on the good would change in the opposite direction as the price change if and only if the percentage change in quantity is greater than the percentage change in price, then the elasticity of good is:

Infinite

Unit Elastic

Price Inelastic

Price Elastic

✅ Correct Option: 4

Expenditure moves opposite to price only when the percentage change in quantity demanded exceeds the percentage change in price, i.e. $|e_D| > 1$ . Demand in this case is price elastic: a price fall raises total expenditure and a price rise lowers it.

2025: 13 May Shift 1

Budget Set is __________

2025: 13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Analysis assumes that level of utility can be expressed in numbers.	(I) Cardinal Utility
(B) Change in total utility due to consumption of one additional unit of a commodity	(II) Law of Diminishing Marginal Utility.
(C) Marginal utility from consuming each additional unit of a commodity declines as its consumption increases.	(III) Marginal Utility
(D) The amount of mangoes that the consumer has to forego in order to get an additional banana, her total utility level being the same.	(IV) Marginal rate of substitution

Choose the correct answer from the options given below:

2025: 29 May Shift 1

What is the Marginal Rate of Substitution(MRS)?

(A) The rate at which a consumer is willing to substitute one good for another.

(B) Equal to the slope of the indifference curve.

(D) Is constant for perfect substitutes.

Choose the correct answer from the options given below:

2026: 13 May Shift 2

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

2025: 27 May Shift 2

The total sum that the consumer has to spend on wheat in 2025?

2026: 15 May Shift 1

What is the cause behind the convexity of indifference curve to the origin?

The expenditure on the good would change in the opposite direction as the price change if and only if the percentage change in quantity is greater than the percentage change in price, then the elasticity of good is:

Solution

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CUET Economics Past Year Questions (Topic-Wise)