CUET Economics Micro > Consumer Behaviour PYQs

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.

Which one of the following statements is most suitable to the law of diminishing marginal utility?

Which of the following conditions of the indifference curve is violated when two indifference curves are intersecting each other?

Arrange the following values of elasticity of demand of a downward sloping linear demand line in correct order starting from left to the right along with the demand curve. (A) E$_d$ =0 (B) E$_d$ = ∞ (C) E$_d$ =1 (D) E$_d$ <1 Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Demand function | (I) Change in total utility due to consumption of one additional unit of a commodity. | | (B) Indifference curves | (II) The relation between the consumer's optimal choice of the quantity of a good and its price. | | (C) Marginal utility | (III) The level of utility that can be expressed in numbers. | | (D) Cardinal utility | (IV) Never intersect each other. | Choose the correct answer from the options given below:

Level of utility that can be expressed in numbers is called?

Which line consists of all bundles that cost exactly equal to consumer income?

If the income effect is stronger than the substitution effect, the demand for the good would be positively related to its price. Such goods are called:

Arrange the following values of elasticity in increasing order: A. Infinity B. Unitary elastic C. Greater than unitary elastic D. Less than unitary elastic Choose the correct answer from the options given below:

Which of the following combinations are correct about the total expenditure method of measuring elasticity? A. Total expenditure on a commodity increases with the increase in the price of the commodity then elasticity of demand for that commodity is elastic. B. Total expenditure on a commodity increases with the increase in the price of the commodity then elasticity of demand for that commodity is inelastic. C. Demand for that commodity is less responsive to the changes in price of that commodity then total expenditure increases with increase in price. D. Demand for that commodity is more responsive to the changes in price of that commodity then total expenditure decreases with increase in price. Choose the correct answer from the options given below:

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:

Given the prices of goods and income of the consumers, the consumer can buy any bundle (X$_1$, X$_2$) such that P$_1$X$_1$ + P$_2$X$_2$ ≤ M. This inequality in the above equation is called__________.

Identify the features of indifference curve ? (A) An indifference curve reflects same utility level with different combinations. (B) Indifference curve are downward sloping from right to left. (C) Higher indifference curve gives greater level of utility. (D) Two indifference curve never intersect each other. Choose the correct answer from the options given below:

When price of a good falls from Rs. 5 to Rs.4 per unit then, its demand increases by 40%. Calculate its price elasticity of demand.

An increase in the price of commodity X is likely to decrease the demand for commodity Y and a decrease in the price of commodity X is likely to increase the demand for commodity Y. How are X and Y related?

Identify the correct statements from the following in respect to the demand of a commodity. A. The demand function is a relation between the amount of the good and its price when other things remain same. B. The slope of the demand curve measures the rate at which demand changes with respect to its price. C. If the substitution effect is stronger than the income effect, then demand and price of good will have positive relation. D. The market demand curve of a good can also be derived by adding individual demand curves vertically. Choose the correct answer from the options given below:

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?

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

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

Identify an analysis which assumes that the level of utility can be expressed in numbers?

The demand for an inferior good ___________ as the income of the consumer increases.

Suppose Prachi buys 30 bananas when its price is Rs. 10 per banana. When the price increases to Rs. 14 per banana, she reduces her demand to 24 bananas. What is the price elasticity of demand in absolute terms?

Arrange the values of the elasticity of demand of the following at different points on a downward straight line demand curve in ascending order. (A) The point where the demand curve meets the horizontal axis. (B) The point where the demand curve meets the vertical axis. (C) At any point to the left of the midpoint of the demand curve. (D) At any point to the right of the midpoint of the demand curve. Choose the correct answer from the options given below:

If the income effect is stronger than the substitution effect, the demand for the good would be positively related to its price. Such a good is called?

The law of demand holds in which of the following condition?

The indifference curve for goods $x_1$ and $x_2$ is sloped downwards when?

The expenditure on the good would change in the opposite direction as the price change if and only if:

Suppose 6 bananas gives 15 units of total utility and 7 bananas gives 18 units of total utility. The Marginal Utility of the 7th banana will be _______.

Suppose the consumer have 15 rupees to spend on purchasing two goods namely $x_1$ and $x_2$ where the price of $x_1$ is 2.50 and price of $x_2$ is 1.50 then what is the maximum quantity of $x_1$ and $x_2$ at which the consumer's budget line will intersect the axis of the graph if $x_1$ and $x_2$ are represented in the vertical axis and horizontal axis of the graph respectively.

Suppose the price of the commodity is declined by 10%, as a result of which, the quantity demanded increased by 20%. Then, calculate the value of the elasticity of demand ($e_D$) and confirm its type.

Arrange the following statements showing the change in budget set due to change in income. (A) The equation of the budget line is $P_1 X_1 + P_2 X_2 = M'$. </li> (B) Consumer's income increases from $M$ to $M'$, but the price of goods remains constant.</li> (C) The set of available bundles depends upon prices and the income of the consumer.</li> (D) Consumers can buy more of the goods at the prevailing market prices.</li> </ol> Choose the correct answer from the options given below:

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

Law of demand is violated when?

The Law of Diminishing Marginal Utility states that when more and more units of a commodity are consumed, Marginal Utility __________

Match List-I with List-II | List-I | List-II | |---|---| | (A) Consumer's equilibrium | (I) ΔY/ ΔX | | (B) Slope of IC | (II) Budget line rotates to the right starting from the Y axis | | (C) Px falls | (III) Consumer should move downwards to the right along the IC | | (D) MRSxy > Px/Py | (IV) Optimum choice of the consumer | Choose the correct answer from the options given below:

A shift in the budget line, when prices are constant, is due to.

How will an increase in the consumer's income affect the budget line? 1. Parallel inward shift of budget line. 2. Parallel outwards shift in budget line. 3. The budget line rotates outwards. 4. Budget line rotates and shifts outwards.

Match List-I with List-II | List-I | List-II | |---|---| | (A) Cardinal utility | (I) Ranking consumption bundles. | | (B) Perfect substitute goods | (II) Level of utility can be expressed in numbers. | | (C) Ordinal Utility | (III) The marginal Rate of Substitution is 1. | | (D) Complimentary goods | (IV) An increase in the price of one good does not lead to an increase in demand for another good. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (IV), (C) - (III), (D) - (II) 2. (A) - (II), (B) - (III), (C) - (I), (D) - (IV) 3. (A) - (I), (B) - (IV), (C) - (II), (D) - (III) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

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.

Two indifference curves can never intersect each other as ............... 1. They give the same level of satisfaction. 2. They give different levels of satisfaction. 3. They are concave to the origin. 4. They are convex to the origin.

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:

What are the features of an Indifference Curve? (A) Indifference curve slopes upwards from left to right. (B) Higher indifference curve gives greater level of utility. (C) Indifference curve slopes downwards from left to right (D) Two indifference curves never intersect each other Choose the correct answer from the options given below:

When utility is measured in quantitative terms, it is ______ of consumer equilibrium.

The rate at which consumer is willing to substitute one good for another is represented by ________.

What will be the value of Marginal utility of the 4th unit | Units consumed | Total Utility derived (utils) | |---|---| | 1 | 10 | | 2 | 8 | | 3 | 5 | | 4 | 2 |

Arrange the following stages of Consumer's Equilibrium in the correct sequence under the utility analysis (A) Marginal Utility becomes equal to the price of a commodity (B) Marginal utility, derived from a commodity X is greater than Px (C) Increase the consumption of commodity X (D) The consumer reallocates expenditure to maximize satisfaction. Choose the correct answer from the options given below:

A consumer derives 10 utilities of satisfaction from consuming 1st unit of good X and 6 utilities of satisfaction from the next unit. What is the marginal utility of the second unit?

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. (C) Changes as we move along the indifference curve. (D) Is constant for perfect substitutes. Choose the correct answer from the options given below:

A rational consumer reaches to equilibrium when:

Which of the following can shift the demand curve to the right? (A) Increase in the income of the consumer (For normal goods). (B) Decrease in the price of complementary goods. (C) Increase in the price of substitute goods. (D) Increase in the price of goods. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Slope of Budget line | (I) $P_1X_1 + P_2X_2 \leq M$ | | (B) Horizontal intercept of budget line | (II) $M/P_2$ | | (C) Vertical intercept of budget line | (III) $-\frac{P_1}{P_2}$ | | (D) Budget constraints | (IV) $M/P_1$ | Choose the correct answer from the options given below:

There are two goods that are priced at Rs 5 each and are available only in integral units. If a consumer has Rs 20, then the bundle that this consumer can afford to buy is:

How the revelation of the fact that junk-foods might be injurious to health can affect the Demand Curve of junk-foods.

Choose the correct statements in the context of the law of diminishing marginal utility (A) States that each successive unit of a commodity provides lower marginal utility. (B) States that each successive unit of a commodity provides higher marginal utility. (C) Explains why demand curves have a negative slope. (D) States that the marginal utility from consuming each additional unit of a commodity declines as its consumption increases, while keeping consumption of other commodities constant. Choose the correct answer from the options given below:

Why indifference curves are convex to origin? 1. Due to the constant market rate of exchange. 2. Due to the increasing marginal rate of substitution. 3. Due to the constant marginal rate of substitution. 4. Due to a diminishing marginal rate of substitution.

How would the decrease in the price of Good-X impact the budget line, when the price of Good-Y and Income remain unchanged? 1. The intercept points of both Good-X and Good-Y will shift outward. 2. The intercept point of Good-X will shift outward and the intercept point of Good-Y will remain unchanged. 3. The intercept point of Good-X will shift inward and the intercept point of Good-Y will remain unchanged. 4. The intercept points of both Good-X and Good-Y will shift inward.

Which of the following would appropriately define a budget set?

What would be the value of the Marginal Rate of Substitution (MRS) when Good-X increases by 5 with the decrease of Good-Y by 15?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Consumer's income changes, but prices remain unchanged. The equation of the budget line. | (I) p₁ x₁ + p₂ x₂ = M' | | (B) Marginal Rate of Substitution (MRS) | (II) p'₁ x₁ + p₂ x₂ = M | | (C) The price of a commodity changes, but income remains unchanged. The equation of the budget line. | (III) Δ Y/ΔX | | (D) Total Utility | (IV) $MU₁ + MU₂ + ... + MU_{n-1} + MU_n$ | Choose the correct answer from the options given below:

Which of the following statements are correct: (A) Consumer's preferences are monotonic: If and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle. (B) The tendency for the MRS to fall with increase in quantity of goods is known as the Law of Diminishing Marginal Rate of Substitution. (C) A decrease in income causes a parallel outward shift of the budget line. (D) The budget set is the collection of all bundles that the consumer can buy with their income at the prevailing market prices. Choose the correct answer from the options given below:

If the price of a commodity increases by 20%, its demand drops by 20%. Then how it will affect the expenditure?

An increase in the price of socks is likely to decrease the demand for shoes and a decrease in the price of socks is likely to increase the demand for shoes. Socks and shoes are:

Anand consumes lesser units of good X when its price falls but more units of X when his income rises. Which of the following statements is true about good X.

Lata likes to eat burgers and has already eaten two. Her marginal utility from the last burger she consumes is 90 utils. If the price of burger is Rs. 25 per unit and marginal utility of a rupee is 3 utils, then?

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?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Marginal rate of substitution | (I) Slope of Budget line | | (B) MUₓ/MUᵧ=Pₓ/Pᵧ | (II) more of at least one good and no less of the other good | | (C) -(Pₓ/Pᵧ) | (III) Law of equi marginal utility | | (D)Monotonic Preferences. | (IV) Slope of Indifference curve | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Decrease in consumer's income | (I) Budget line becomes steeper | | (B) Increase in price of Good X | (II) Parallel and leftward shift in the budget line | | (C) Equal reduction in price of both goods X and Y | (III) Budget line becomes flatter | | (D) Increase in price of Good Y | (IV) No change in the slope of the budget line | Choose the correct answer from the options given below:

Arrange the following concept emerges in context of consumer equilibrium. (A) Transfer his expenditure from Good Y to Good X. (B) Sacrifice more of Good Y to gain Good X. (C) Till, Marginal Rate of Substitution (MRSxy) = Market Rate of Exchnage. (D) Suppose, Marginal Rate of Substitution (MRSxy) > Market Rate of Exchnage. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Parallel inward shift in budget line | (I) M/p₁ > M/p₁' | | (B) Parallel outward shift in budget line | (II) M/p₁ < M/p₁' | | (C) Budget line steeper | (III) M' < M | | (D) Budget line flatter | (IV) M' > M | Choose the correct answer from the options given below:

Which of the following statements are true for the Indifference Curve? (A). A higher indifference curve gives a greater level of utility. (B). The indifference curve slopes downwards from right to left. (C). The indifference curve slopes downwards from left to right. (D). Two indifference curves never intersect each other. 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?

Match List-I with List-II | List-I | List-II | |---|---| | (A). The level of utility can be expressed in numbers. | (I). Total Utility | | (B). The change in total utility due to consumption of one additional unit of a commodity. | (II). Ordinal Utility | | (C). The total satisfaction derived from consuming the given amount of some commodity. | (III). Cardinal Utility | | (D). The level of utility can be expressed in ranks. | (IV). Marginal Utility | Choose the correct answer from the options given below:

Which of the following factor makes the demand curve to shifts leftward for a normal goods?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Budget line | (I) $-\frac{p_1}{p_2}$ | | (B) Budget constraint | (II) Bundles available to the consumer | | (C) Budget set | (III) $p_1X_1 + p_2X_2 = M$ | | (D) Slope of budget line | (IV) $p_1X_1 + p_2X_2 \leq M$ | Choose the correct answer from the options given below:

Arun spends 200 rupees on good X irrespective of its price whereas Varun buys 10 units of Good X irrespective of its price. The respective values of the price elasticity of demand for Good X for both the consumers is

The income of a consumer is spent by him on two goods X and Y. The marginal utility of the goods at the present level of consumption are equal to each other. However, the price of good X is double that of good Y. The consumer, in order to attain equilibrium, will

Good X and Y are considered to be substitutes by a consumer. He is currently consuming good X. If the price of Good Y decreases, then arrange the following in correct sequence. (A) Demand for Good X decreases. (B) Consumer finds Good Y to be relatively cheaper than Good X. (C) Demand curve for Good X shifts to the left. (D) Consumer shifts from Good X to Good Y. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Increase in consumers' income | (I) Budget line becomes flatter | | (B) Decrease in price of good on X axis | (II) No change in the slope of budget line | | (C) Equal increase in price of both good X and good Y | (III) Parallel and rightward shift in their budget line | | (D) Decrease in Price of the good on Y axis | (IV) Budget line becomes steeper | Choose the correct answer from the options given below:

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?

In the cardinal utility analysis, the marginal utility of money is considered to be

Match List-I with List-II | List-I | List-II | |---|---| | (A) Increase in price of goods X | (I) Increase in demand for normal goods. | | (B) Increase in income of consumers | (II) Demand is price inelastic | | (C) Good X is a necessary good | (III) Unit elasticity of demand. | | (D) Demand curve of Good X is a rectangular hyperbola | (IV) Contraction in demand for good X | Choose the correct answer from the options given below:

Individual demand for a good does not depend upon which of the following?

Two goods X and Y are such a combination that, when the price of good Y increases, the demand for good X increases, How are goods X and Y related?

"If and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle". Such preferences are known as

Which of the following indicates a situation of consumer's equilibrium for a rational consumer consuming two goods?

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:

Which of the following will NOT cause a change in the budget set of a consumer?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Budget Set | (I) $-(P_1/P_2)$ | | (B) Slope of the budget line | (II) $M/P_1$ | | (C) Horizontal intercept of the budget line | (III) $P_1 X_1 + P_2 X_2 \le M$ | | (D) Vertical intercept of the budget line | (IV) $M/P_2$ | Choose the correct answer from the options given below:

The total satisfaction derived from consuming the given amount of commodity X is known as _______

What causes an indifference curve to be convex to the origin? 1. Marginal utility 2. Market Rate of Exchange 3. Law of Diminishing Marginal Rate of Substitution 4. Law of Increasing Marginal Rate of Substitution

Identify the correct statements with regard to the consumer's budget line/set. (A) A decrease in the price of goods makes the budget line steeper (B) A decrease in the price of goods makes the budget line flatter (C) An increase in the price of goods makes the budget line steeper (D) All bundles in the positive quadrant which are on or below the line are included in the budget set.

Arrange the following statements related to the change in demand for normal good. (A) The consumer's income, increases. (B) Given the prices of other goods and the preferences of the consumer, (C) The demand curve shifts rightward. (D) The demand for the normal good at given price changes.

With regard to price elasticity, in general, demand for a luxury good is likely to be ........ 1. Inelastic 2. Unitary elastic 3. Perfectly Inelastic 4. Elastic

Suppose a consumer purchase 15 bananas when its price is Rs. 5 per banana. When the price increases to Rs. 7 per banana, consumer reduces his demand to 12 bananas. Price elasticity of demand would be........... 1. 0.5 2. 0.6 3. 0.4 4. 0.7

Which among the following are the features of the indifference curve? (A) Indifference curve slopes downwards from left to right. (B) Higher indifference curve gives greater level of utility. (C) Indifference curve reflects negative utility. (D) Two indifference curves never intersect each other. Choose the correct answer from the options given below:

Identify the factors of price elasticity of demand. (A) Nature of Goods. (B) Availability of Substitution. (C) Complementary Goods (D) Cost of Goods. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Satisfaction derived from consuming the given amount of some commodity x. | (I) Marginal rate of substitution. | | (B) Change in total utility due to consumption of one additional unit of a commodity. | (II) Ordinal Utility | | (C) Ranking of various consumption bundle. | (III) Marginal Utility | | (D) Downward slope of indifference curve. | (IV) Total Utility | Choose the correct answer from the options given below:

From which of the following, consumers can choose their consumption bundle?

Budget Set is __________

The relation between the consumer's optimal choice of the quantity of a good and its price is called ?

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:

Find the correct statement/statements. (A) Goods which are consumed together are called complementary goods. (B) The market demand curve can be derived as a vertical summation of the individual demand curves. (C) Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in its price. (D) If the consumer's preferences change in favor of a good, the demand curve for such a good shifts leftward. Choose the correct answer from the options given below:

When Elasticity of Demand Curve is 1 at every point on the Demand Curve, this curve is known as:

According to the Theory of Consumer Behaviour, $P_1X_1 + P_2X_2 ≤ M$ is called the Consumer's _____________

Arrange the following of elasticities of demand in increasing order as per geometric method. A. Mid-Point of the demand curve B. Intercept on Y-axis C. Between Mid-Point and intercept on X-axis D. Between Mid-Point and intercept on Y-axis E. Intercept on X-axis Choose the correct answer from the options given below:

In the Linear Demand Curve AB, the elasticity of demand ($e_D$) at point D can be measured geometrically by the formula __________. <img src="https://balti.afterboards.in/gmpk8cyXpzXtuMm" width="300px"/>

An explanation for a downward sloping demand curve rests on the notion of :

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 :

Which of the following statements correctly describes the nature of indifference curve ? (A) Indifference curve slopes downwards from left to right (B) A lower indifference curve represents lower cost to consumer (C) A higher indifference curve gives higher level of satisfaction (D) Two indifference curves never intersect each other (E) Indifference curves are always parallel to each other Choose the correct answer from the options given below :

Which of the following inequality represents the consumer's budget constraint ?

Savita consumes 2 goods X and Y. If marginal utility of X is 30 utils and that of Y is 45 utils. Prices of both goods X and Y are Rs. 3 and Rs. 5 respectively. Savita will consume ________.

Match List - I with List - II. | List - I | List - II | |---|---| | (A) Indifference curve | (I) Shows various combination of two goods that give the same utility to the consumer | | (B) Production possibility curve | (II) Shows various combination of two goods that can be produced by an economy | | (C) Budget line | (III) Shows various combination of two goods that can be purchased by the consumer | | (D) Demand curve | (IV) Shows inverse relationship between price of the given commodity & its quantity demanded | Choose the correct answer from the options given below :

A good that is considered to be inferior to a consumer, may be observed as normal good to the another consumer. This is due to

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.

"Increase in price of good 'x' leads to increase in demand of good 'Y'. " How the goods are related to.

Elasticity of Demand is given by the formula.

Suppose an Individual buys 15 units of good when its price is Rs 5 per unit. What will happen to his demand when price of the good increases to Rs 7 per unit and elasticity of demand for the good is 0.5

Match List - I with List - II. | List - I | List - II | |---|---| | (A) Fall in price of good | (I) Tea and coffee | | (B) Complementary goods | (II) Expansion of demand | | (C) Substitute good | (III) Shifting of demand curve | | (D) Rise in income | (IV) Shoes and socks | Choose the correct answer from the options given below :

Elasticity of demand is constant and equal to 1 at every point on the demand curve. The shape of such a demand curve would be :

If tea and coffee can be used in place of one another, then which of the following statements hold true ? (A) Increase in price of tea leads to decrease in demand for coffee. (B) Increase in price of tea leads to increase in demand for coffee. (C) Tea and coffee are substitute goods. (D) Decrease in price of tea leads to increase in price of coffee. (E) Tea and Coffee are complimentary goods. Choose the correct answer from the options given below :

The price and quantity at a point on the demand curve of a good are given as 10 and 50 respectively. If the price is changed to 6 and as a result quantity changes to to 65, how do you explain the change.

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

The cause for the demand curve's movement is:

The demand for normal good _____ with an increase in income of the consumer.

A consumer is consuming two goods X and Y. If Muy=20, Mux=60 price of good Y=Rs 4, then what will be the price of good X if consumer it at equilibrium.

The downward movement along the demand curve of a commodity is due to: Choose the correct option.

Budget set of a consumer is defined as: