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Q1:

3 June Shift 2

Micro > Consumer Behaviour

Medium

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:

(A), (B), (C), (D)

(B), (A), (C), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 4

Correct Answer

Explanation →

Q2:

3 June Shift 1

Micro > Consumer Behaviour

Medium

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

Fall in equilibrium price and quantity.

Rise in equilibrium price and quantity.

Fall in equilibrium price and quantity to rise.

Rise in equilibrium price and quantity to fall.

Correct Answer

Option 1

Correct Answer

Explanation →

Q3:

3 June Shift 1

Micro > Consumer Behaviour

Easy

Read the report carefully and answer the questions based on the report: | Consumer’s Budget | ₹ 100 | |------------------------|-----------------| | Price of Good X | ₹ 5 per unit | | Price of Good Y | ₹ 10 per unit |

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

5 units

10 units

15 units

20 units

Correct Answer

Option 4

Correct Answer

Explanation →

Q4:

3 June Shift 1

Micro > Consumer Behaviour

Easy

Read the report carefully and answer the questions based on the report: | Consumer’s Budget | ₹ 100 | |------------------------|-----------------| | Price of Good X | ₹ 5 per unit | | Price of Good Y | ₹ 10 per unit |

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

5 units

10 units

15 units

20 units

Correct Answer

Option 2

Correct Answer

Explanation →

Q5:

3 June Shift 1

Micro > Consumer Behaviour

Easy

Read the report carefully and answer the questions based on the report: | Consumer’s Budget | ₹ 100 | |------------------------|-----------------| | Price of Good X | ₹ 5 per unit | | Price of Good Y | ₹ 10 per unit |

In a situation when MRSxy > Px / Py, the consumer would react by:

Decreasing the consumption of Good X.

Increasing the consumption of Good Y.

Increasing the consumption of Good X.

Decreasing the consumption of Good Y.

Correct Answer

Option 3

Correct Answer

Explanation →

Q6:

3 June Shift 1

Micro > Consumer Behaviour

Easy

Read the report carefully and answer the questions based on the report: | Consumer’s Budget | ₹ 100 | |------------------------|-----------------| | Price of Good X | ₹ 5 per unit | | Price of Good Y | ₹ 10 per unit |

On the basis of given data, the slope of the price line will be _________

0.5

2

5

10

Correct Answer

Option 1

Correct Answer

Explanation →

Q7:

3 June Shift 1

Micro > Consumer Behaviour

Easy

Read the report carefully and answer the questions based on the report: | Consumer’s Budget | ₹ 100 | |------------------------|-----------------| | Price of Good X | ₹ 5 per unit | | Price of Good Y | ₹ 10 per unit |

On the basis of given data above, the correct equation of price line will be.

5X + 12Y = 100

10X + 5Y = 100

5Qx + 10Qy = 100

10Qx + 5Qy = 100

Correct Answer

Option 3

Correct Answer

Explanation →

Q8:

2 June Shift 1

Micro > Consumer Behaviour

Medium

Law of demand is violated when?

Income effect is negative.

Substitution effect is negative.

Negative income effect is greater than substitution effect.

Negative income effect is less than substitution effect.

Correct Answer

Option 3

Correct Answer

Explanation →

Q9:

2 June Shift 1

Micro > Consumer Behaviour

Easy

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

begins to increase.

remains constant.

begins to decrease.

becomes zero.

Correct Answer

Option 3

Correct Answer

Explanation →

Q10:

2 June Shift 1

Micro > Consumer Behaviour

Medium

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) - (IV), (B) - (I), (C) - (II), (D) - (III)

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

(A) - (IV), (B) - (II), (C) - (I), (D) - (III)

Correct Answer

Option 1

Correct Answer

Explanation →

Q11:

2 June Shift 1

Micro > Consumer Behaviour

Easy

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

Change in demand of the commodity.

Change in the income of the consumer.

Change in preferences of the consumer.

Change in utility derived.

Correct Answer

Option 2

Correct Answer

Explanation →

Q12:

31 May Shift 1

Micro > Consumer Behaviour

Easy

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.

Parallel inward shift of budget line.

Parallel outwards shift in budget line.

The budget line rotates outwards.

Budget line rotates and shifts outwards.

Correct Answer

Option 2

Correct Answer

Explanation →

Q13:

31 May Shift 1

Micro > Consumer Behaviour

Medium

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)

(A) - (I), (B) - (IV), (C) - (III), (D) - (II)

(A) - (II), (B) - (III), (C) - (I), (D) - (IV)

(A) - (I), (B) - (IV), (C) - (II), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation →

Q14:

31 May Shift 1

Micro > Consumer Behaviour

Medium

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.

The demand curve is a rectangular hyperbola.

The value of p times q is constant.

The elasticity of demand at all points located on this demand curve is greater than 1.

At every point of consumption, the expenditure remains the same.

Correct Answer

Option 3

Correct Answer

Explanation →

Q15:

31 May Shift 1

Micro > Consumer Behaviour

Medium

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.

They give the same level of satisfaction.

They give different levels of satisfaction.

They are concave to the origin.

They are convex to the origin.

Correct Answer

Option 2

Correct Answer

Explanation →

Q16:

30 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

Correct Answer

Option 2

Correct Answer

Explanation →

Q17:

30 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A), (C) and (D) only

(A), (B) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation →

Q18:

30 May Shift 1

Micro > Consumer Behaviour

Easy

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

Ordinal Approach.

Cardinal Approach.

Indifference Curve approach.

Law of Diminishing marginal utility.

Correct Answer

Option 2

Correct Answer

Explanation →

Q19:

30 May Shift 1

Micro > Consumer Behaviour

Easy

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

Marginal rate of transformation.

Slope of indifference curve.

Price Ratio.

optimum choice of the consumer.

Correct Answer

Option 2

Correct Answer

Explanation →

Q20:

30 May Shift 1

Micro > Consumer Behaviour

Easy

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 |

8 utils

- 3 utils

3 utils

25 utils

Correct Answer

Option 2

Correct Answer

Explanation →

Q21:

29 May Shift 2

Micro > Consumer Behaviour

Medium

Comprehension: Read the passage carefully and answer the questions based on the passage: Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve and that of the budget line are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the marginal rate of substitution at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

The economic concept at which the consumer is willing to substitute one good for the other?

Price Ratio.

Marginal rate of substitution.

Marginal rate of technical substitution.

Diminishing marginal rate.

Correct Answer

Option 2

Correct Answer

Explanation →

Q22:

29 May Shift 2

Micro > Consumer Behaviour

Easy

Comprehension: Read the passage carefully and answer the questions based on the passage: Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve and that of the budget line are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the marginal rate of substitution at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

The rate at which the consumer is able to substitute one good for the other in the market is called?

Price Ratio.

Marginal rate of substitution.

Marginal rate of technical substitution.

Diminishing marginal rate.

Correct Answer

Option 1

Correct Answer

Explanation →

Q23:

29 May Shift 2

Micro > Consumer Behaviour

Medium

Comprehension: Read the passage carefully and answer the questions based on the passage: Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve and that of the budget line are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the marginal rate of substitution at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

The exceptional case in optimal choice of the consumer is where ..................

One good is more preferred than another.

Entire income is spent on one of the goods only.

Partial spending of income on both goods.

Both goods are preferred in same quantity.

Correct Answer

Option 2

Correct Answer

Explanation →

Q24:

29 May Shift 2

Micro > Consumer Behaviour

Medium

Comprehension: Read the passage carefully and answer the questions based on the passage: Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve and that of the budget line are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the marginal rate of substitution at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

The optimum bundle of the consumer is located at the point where..................?

Budget line is tangent to the indifference curves.

Budget line is tangent to one of the indifference curves.

Budget line is equal indifference curves.

Marginal rate of transformation is tangent to the price ratio.

Correct Answer

Option 2

Correct Answer

Explanation →

Q25:

29 May Shift 2

Micro > Consumer Behaviour

Medium

Comprehension: Read the passage carefully and answer the questions based on the passage: Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve and that of the budget line are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the marginal rate of substitution at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

A consumer is willing to give up 4 bananas if it is given an extra mango, but in the market, if it gives up 6 bananas, this bundle will be considered.

Preferred bundle.

Optimum bundle.

Most preferred bundle.

Inferior bundle.

Correct Answer

Option 4

Correct Answer

Explanation →

Q26:

29 May Shift 1

Micro > Consumer Behaviour

Medium

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), (B), (C), (D)

(B), (D), (C), (A)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 2

Correct Answer

Explanation →

Q27:

29 May Shift 1

Micro > Consumer Behaviour

Easy

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?

10 utils.

14 utils.

6 utils.

16 utils.

Correct Answer

Option 3

Correct Answer

Explanation →

Q28:

29 May Shift 1

Micro > Consumer Behaviour

Medium

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), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q29:

29 May Shift 1

Micro > Consumer Behaviour

Medium

A rational consumer reaches to equilibrium when:

Marginal rate of substitution = Marginal rate of Exchange

Marginal rate of Exchange = Price Ratio

Marginal rate of Substitution = Marginal rate of Transformation

Total Utility = Total Cost

Correct Answer

Option 2

Correct Answer

Explanation →

Q30:

29 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q31:

28 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation →

Q32:

28 May Shift 2

Micro > Consumer Behaviour

Easy

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:

(3,3)

(4,5)

(1,3)

(5,4)

Correct Answer

Option 3

Correct Answer

Explanation →

Q33:

28 May Shift 2

Micro > Consumer Behaviour

Medium

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

Lead to upward shift on demand curve.

Lead to downward shift on demand curve.

Rightward shift in demand curve of junk-foods.

Leftward shift in demand curve of junk-foods.

Correct Answer

Option 4

Correct Answer

Explanation →

Q34:

28 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A), (B) and (D) only

(B), (C) and (D) only

(A), (B), (C) and (D)

(A), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation →

Q35:

28 May Shift 1

Micro > Consumer Behaviour

Medium

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.

Due to the constant market rate of exchange.

Due to the increasing marginal rate of substitution.

Due to the constant marginal rate of substitution.

Due to a diminishing marginal rate of substitution.

Correct Answer

Option 4

Correct Answer

Explanation →

Q36:

28 May Shift 1

Micro > Consumer Behaviour

Medium

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.

The intercept points of both Good-X and Good-Y will shift outward.

The intercept point of Good-X will shift outward and the intercept point of Good-Y will remain unchanged.

The intercept point of Good-X will shift inward and the intercept point of Good-Y will remain unchanged.

The intercept points of both Good-X and Good-Y will shift inward.

Correct Answer

Option 2

Correct Answer

Explanation →

Q37:

28 May Shift 1

Micro > Consumer Behaviour

Easy

Which of the following would appropriately define a budget set?

$P_1X_1+P_2X_2 \ge M$.

$P_1X_1+P_2X_2 < M$.

$P_1X_1+P_2X_2 > M$.

$P_1X_1+P_2X_2 \le M$.

Correct Answer

Option 4

Correct Answer

Explanation →

Q38:

28 May Shift 1

Micro > Consumer Behaviour

Medium

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?

-2.5

-0.66

-3

0.66

Correct Answer

Option 3

Correct Answer

Explanation →

Q39:

27 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation →

Q40:

27 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q41:

27 May Shift 2

Micro > Consumer Behaviour

Medium

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

Decline in expenditure.

Rise in expenditure.

No change in expenditure.

Small increase in expenditure.

Correct Answer

Option 3

Correct Answer

Explanation →

Q42:

27 May Shift 2

Micro > Consumer Behaviour

Easy

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:

Giffen goods.

Substitutes goods.

Complementary goods.

Inferior goods.

Correct Answer

Option 3

Correct Answer

Explanation →

Q43:

27 May Shift 2

Micro > Consumer Behaviour

Easy

Macroeconomic Variables In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.

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

Rs 1,350

Rs 1,400

Rs 500

Rs 900

Correct Answer

Option 1

Correct Answer

Explanation →

Q44:

27 May Shift 2

Micro > Consumer Behaviour

Easy

Macroeconomic Variables In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.

The total sum consumer will spends on cloth in 2025?

Rs 900

Rs 1,400

Rs 600

Rs 1350

Correct Answer

Option 3

Correct Answer

Explanation →

Q45:

27 May Shift 2

Micro > Consumer Behaviour

Easy

Macroeconomic Variables In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.

The total sum consumer spends on cloth in 2022?

Rs 900

Rs 500

Rs 400

Rs 600

Correct Answer

Option 2

Correct Answer

Explanation →

Q46:

27 May Shift 2

Micro > Consumer Behaviour

Easy

Macroeconomic Variables In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.

The total sum that the consumer has to spend on wheat in 2022?

Rs 900

Rs 500

Rs 400

Rs 600

Correct Answer

Option 1

Correct Answer

Explanation →

Q47:

27 May Shift 2

Micro > Consumer Behaviour

Easy

Macroeconomic Variables In an economy where two goods, wheat and cloth, are produced. A representative consumer buys 90 kg of wheat and 5 pieces of cloth in a year. Suppose in the year 2022 the price of a kg of wheat was Rs 10 and a piece of cloth was Rs 100. The prices of a kg of wheat and a piece of cloth went up to Rs 15 and Rs 120 respectively in the year 2025. It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders.

What is Consumer Price Index?

129.29 (approximately).

149.29 (approximately).

139.29 (approximately)

159.29 (approximately).

Correct Answer

Option 3

Correct Answer

Explanation →

Q48:

26 May Shift 2

Micro > Consumer Behaviour

Hard

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.

Good X is an inferior good for Anand but not a Giffen good.

Good X is a Giffen good for Anand but not inferior.

Good X is normal good for Anand.

Good X is both Inferior and Giffen good for Anand.

Correct Answer

Option 4

Correct Answer

Explanation →

Q49:

26 May Shift 2

Micro > Consumer Behaviour

Medium

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?

Lata should increase the consumption of burgers to attain equilibrium.

Lata should have consumed lesser burgers to attain equilibrium.

Lata is in equilibrium so she should not change the level of consumption.

The given information is insufficient to determine the consumption behaviour of Lata.

Correct Answer

Option 1

Correct Answer

Explanation →

Q50:

26 May Shift 2

Micro > Consumer Behaviour

Medium

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?

He should reduce the consumption of food and increase the consumption of clothing.

He should increase the consumption of food and reduce the consumption of clothing.

He should reduce the consumption of both the goods.

He shouldn't change his consumption level as he is already at equilibrium.

Correct Answer

Option 1

Correct Answer

Explanation →

Q51:

26 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (II)

(A) - (I), (B) - (III), (C) - (IV), (D) - (II)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (IV), (B) - (III), (C) - (I), (D) - (II)

Correct Answer

Option 4

Correct Answer

Explanation →

Q52:

26 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (I), (D) - (IV)

(A) - (II), (B) - (I), (C) - (IV), (D) - (III)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

Correct Answer

Option 3

Correct Answer

Explanation →

Q53:

22 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A), (B), (C), (D)

(D), (B), (A), (C)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 2

Correct Answer

Explanation →

Q54:

22 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 4

Correct Answer

Explanation →

Q55:

22 May Shift 2

Micro > Consumer Behaviour

Medium

Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

The optimum bundle of the consumer is located at the point where:

Budget line = Indifference curve.

Indifference curve = Slope of budget line.

Slope of indifference curve = Slope of budget line.

Slope of indifference curve = Budget line.

Correct Answer

Option 3

Correct Answer

Explanation →

Q56:

22 May Shift 2

Micro > Consumer Behaviour

Medium

Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

The rate at which the consumer is able to substitute one good for the other in the market is indicated by

Slope of Indifference curve.

Slope of Budget line.

Slope of consumer selection.

Marginal rate of substitution.

Correct Answer

Option 2

Correct Answer

Explanation →

Q57:

22 May Shift 2

Micro > Consumer Behaviour

Medium

Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

Which of the following indicates the slope of Budget Line?

$(-)P_1/P_2$

$P_1/P_2$

$(-)P_2/P_1$

$P_2/P_1$

Correct Answer

Option 1

Correct Answer

Explanation →

Q58:

22 May Shift 2

Micro > Consumer Behaviour

Medium

Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

Which goods are represented by a straight line Indifference Curve?

Complementary Goods.

Substitute Goods.

Joint Products/Goods.

By-Products.

Correct Answer

Option 2

Correct Answer

Explanation →

Q59:

22 May Shift 2

Micro > Consumer Behaviour

Medium

Equality of the Marginal Rate of Substitution and the Ratio of the Prices The optimum bundle of the consumer is located at the point where the budget line is tangent to one of the indifference curves. If the budget line is tangent to an indifference curve at a point, the absolute value of the slope of the indifference curve (MRS) and that of the budget line (price ratio) are the same at that point. The slope of the indifference curve is the rate at which the consumer is willing to substitute one good for the other. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market. At the optimum, the two rates should be the same. To see why, consider a point where this is not so. Suppose the MRS at such a point is 2 and suppose the two goods have the same price. At this point, the consumer is willing to give up 2 mangoes if she is given an extra banana. But in the market, she can buy an extra banana if she gives up just 1 mango. Therefore, if she buys an extra banana, she can have more of both the goods compared to the bundle represented by the point, and hence, move to a preferred bundle. Thus, a point at which the MRS is greater, the price ratio cannot be the optimum. A similar argument holds for any point at which the MRS is less than the price ratio.

The rate at which the consumer is willing to substitute one good for the other is indicated by:

Monotonic Preferences.

Slope of Indifference curve.

Price ratio.

Slope of Budget line.

Correct Answer

Option 2

Correct Answer

Explanation →

Q60:

22 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A), (B) and (D) only

(A), (C) and (D) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q61:

22 May Shift 1

Micro > Consumer Behaviour

Medium

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

Price Inelastic.

Price Elastic.

Unit Elastic.

Income elastic.

Correct Answer

Option 2

Correct Answer

Explanation →

Q62:

22 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A) - (I), (B) - (III), (C) - (IIII), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 4

Correct Answer

Explanation →

Q63:

22 May Shift 1

Micro > Consumer Behaviour

Medium

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

When the consumer's income increases.

Consumer's preferences change in favour of a good.

The price of goods decrease.

When the consumer's income decreases.

Correct Answer

Option 4

Correct Answer

Explanation →

Q64:

21 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (III), (B) - (II), (C) - (IV), (D) - (I)

(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Correct Answer

Option 4

Correct Answer

Explanation →

Q65:

21 May Shift 1

Micro > Consumer Behaviour

Medium

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

0 and 1 respectively.

1 and 0 respectively.

0 for both the consumers.

less than 1 for Arun and More than 1 for Varun.

Correct Answer

Option 2

Correct Answer

Explanation →

Q66:

21 May Shift 1

Micro > Consumer Behaviour

Medium

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

Increase the consumption of X and decrease the consumption of Y.

Increase the consumption of Y and decrease the consumption of X.

Increase the consumption of X without changing the consumption of Y.

Keep his consumption level constant as he is already operating at equilibrium.

Correct Answer

Option 2

Correct Answer

Explanation →

Q67:

21 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(B), (D), (A), (C)

Correct Answer

Option 4

Correct Answer

Explanation →

Q68:

21 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Correct Answer

Option 2

Correct Answer

Explanation →

Q69:

21 May Shift 1

Micro > Consumer Behaviour

Medium

The equation of demand curve of a good for a consumer is given to be $p_d = e$ where e is a constant. What will be the shape of the demand curve?

Parallel to x axis.

Parallel to y axis.

Downward sloping rectangular hyperbola.

Downward sloping straight line forming and angle of 135° with x axis.

Correct Answer

Option 3

Correct Answer

Explanation →

Q70:

21 May Shift 1

Micro > Consumer Behaviour

Medium

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

Constant.

Decreasing.

Increasing.

First decreasing and then increasing.

Correct Answer

Option 1

Correct Answer

Explanation →

Q71:

16 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A) - (IV), (B) - (III), (C) - (II), (D) - (I)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (IV), (B) - (I), (C) - (II), (D) - (III)

Correct Answer

Option 4

Correct Answer

Explanation →

Q72:

16 May Shift 1

Micro > Consumer Behaviour

Easy

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

Affordability of the consumer.

Price of substitute good.

Tastes and preferences of the consumer.

Number of consumers

Correct Answer

Option 4

Correct Answer

Explanation →

Q73:

16 May Shift 1

Micro > Consumer Behaviour

Easy

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?

complementary goods

substitute goods

inferior goods

supplementary goods

Correct Answer

Option 2

Correct Answer

Explanation →

Q74:

16 May Shift 1

Micro > Consumer Behaviour

Medium

"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

Monotonic Preference.

Structured Preferences.

Sequential Preferences

Irregular Preferences.

Correct Answer

Option 1

Correct Answer

Explanation →

Q75:

15 May Shift 1

Micro > Consumer Behaviour

Medium

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

The point at which the budget line just touches (is tangent to), one of the indifference curves.

The absolute value of the slope of the indifference curve (MRS) is greater than that of the budget line (price ratio) at that point.

A point below the budget line.

The point at which the consumer spends all his/her income and the budget line intersects one of the indifference curves.

Correct Answer

Option 1

Correct Answer

Explanation →

Q76:

15 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A), (B) and (D) only

(B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation →

Q77:

15 May Shift 1

Micro > Consumer Behaviour

Medium

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

Change in quantities of goods purchased by the consumer.

Change in the prices of both the goods purchased by the consumer.

Change in the income of the consumer.

change in the price of any one of the two goods purchased by the consumer, price of the other good remaining same.

Correct Answer

Option 1

Correct Answer

Explanation →

Q78:

15 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (III), (B) - (I), (C) - (IV), (D) - (II)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation →

Q79:

15 May Shift 1

Micro > Consumer Behaviour

Easy

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

Marginal utility

Total utility

Average utility

Maximum utility

Correct Answer

Option 2

Correct Answer

Explanation →

Q80:

14 May Shift 1

Micro > Consumer Behaviour

Medium

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

Marginal utility

Market Rate of Exchange

Law of Diminishing Marginal Rate of Substitution

Law of Increasing Marginal Rate of Substitution

Correct Answer

Option 3

Correct Answer

Explanation →

Q81:

14 May Shift 1

Micro > Consumer Behaviour

Medium

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.

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation →

Q82:

14 May Shift 1

Micro > Consumer Behaviour

Medium

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.

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer

Option 3

Correct Answer

Explanation →

Q83:

14 May Shift 1

Micro > Consumer Behaviour

Easy

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

Inelastic

Unitary elastic

Perfectly Inelastic

Elastic

Correct Answer

Option 4

Correct Answer

Explanation →

Q84:

14 May Shift 1

Micro > Consumer Behaviour

Medium

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

0.5

0.6

0.4

0.7

Correct Answer

Option 1

Correct Answer

Explanation →

Q85:

13 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A), (C) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(A), (B) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation →

Q86:

13 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A), (B) and (D) only

(A), (C) and (D) only

(A), (B), and (C)

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation →

Q87:

13 May Shift 2

Micro > Consumer Behaviour

Medium

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:

(A) - (IV), (B) - (III), (C) - (II), (D) - (I)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 1

Correct Answer

Explanation →

Q88:

13 May Shift 2

Micro > Consumer Behaviour

Easy

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

Budget Line.

Budget Set.

Indifference Curve.

Marginal Rate of Substitution.

Correct Answer

Option 2

Correct Answer

Explanation →

Q89:

13 May Shift 1

Micro > Consumer Behaviour

Easy

Budget Set is __________

Given the prices of the goods and the income of a consumer.

Any bundle as long as it costs less than or equal to the income

A set of price available to producer.

Set of bundles available to the consumer

Correct Answer

Option 4

Correct Answer

Explanation →

Q90:

13 May Shift 1

Micro > Consumer Behaviour

Easy

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

Supply function

Demand Function

Cost Function

Output function

Correct Answer

Option 2

Correct Answer

Explanation →

Q91:

13 May Shift 1

Micro > Consumer Behaviour

Easy

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation →

Q92:

13 May Shift 1

Micro > Consumer Behaviour

Medium

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:

(A) and (C) only

(A), (B) and (C) only

(A) and (D) Only

(B), (C) and (D) only

Correct Answer

Option 1

Correct Answer

Explanation →

Q93:

CUET Economics 2024 Slot 1

Micro > Consumer Behaviour

Easy

(A) Marginal Utility is the change in Total Utility due to consumption of one additional unit of commodity. (B) Two Indifference Curves intersect each other. (C) Marginal Utility becomes Zero at a level when Total Utility remains constant. (D) Diminishing Marginal Rate of Substitution does not affect Indifference Curve. (E) Indifference Curve slopes downwards from left to right.

Which of the following are correct statements?

(A), (B) and (C) only

(A), (C) and (E) only

(A), (D) and (E) only

(B), (D) and (E) only

Correct Answer

Option 2

Correct Answer

Explanation →

Q94:

CUET Economics 2024 Slot 1

Micro > Consumer Behaviour

Easy

<table class="question-table"> <thead> <tr> <th colspan="2">Match List-I with List-II</th> </tr> </thead> <tbody> <tr> <th>List-I<br>(Characteristic)</th> <th>List-II<br>(Explanation)</th> </tr> <tr> <td>(A) Equilibrium</td> <td>(I) Plans of all the consumers and firms in the market match</td> </tr> <tr> <td>(B) Excess supply</td> <td>(II) Demand decreases with an increase in income</td> </tr> <tr> <td>(C) Inferior good</td> <td>(III) Supply is greater than market demand</td> </tr> <tr> <td>(D) Price ceiling</td> <td>(IV) Imposition of upper limit by government</td> </tr> </tbody> </table>

Match List-I with List-II :

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 2

Correct Answer

Explanation →

Q95:

CUET Economics 2024 Slot 1

Micro > Consumer Behaviour

Easy

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

Perfectly inelastic demand curve

Perfectly elastic demand curve

Rectangular Hyperbola

Greater than unitary demand curve

Correct Answer

Option 3

Correct Answer

Explanation →

Q96:

CUET Economics 2024 Slot 1

Micro > Consumer Behaviour

Hard

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

Budget

Budget Set

Budget Constraint

Budget Behaviour

Correct Answer

Option 3

Correct Answer

Explanation →

Q97:

20 June Shift 1

Micro > Consumer Behaviour

Medium

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:

A, B, C, D, E

D, B, A, E, C

B, D, A, C, E

E, C, A, D, B

Correct Answer

Option 4

Correct Answer

Explanation →

Q98:

20 June Shift 1

Micro > Consumer Behaviour

Easy

The quantity of a good that the consumer chooses can increase or decrease with the rise in the price of a related goods depending on whether the two goods are substitutes or complementary to each other. Goods which are consumed together are called complementary goods. Examples of goods which are complement to each other include tea and sugar, shoes and socks, pen and ink, etc. Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and decrease in the price of sugar is likely to increase the demand for tea. Similar is the case with other complements. In general, the demand for a good moves in the opposite direction of the price of its complementary goods.

The goods which can be used in place of each other are called ?

Normal goods

Complementary goods

Substitute goods

Giffen goods

Correct Answer

Option 3

Correct Answer

Explanation →

Q99:

20 June Shift 1

Micro > Consumer Behaviour

Easy

The quantity of a good that the consumer chooses can increase or decrease with the rise in the price of a related goods depending on whether the two goods are substitutes or complementary to each other. Goods which are consumed together are called complementary goods. Examples of goods which are complement to each other include tea and sugar, shoes and socks, pen and ink, etc. Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and decrease in the price of sugar is likely to increase the demand for tea. Similar is the case with other complements. In general, the demand for a good moves in the opposite direction of the price of its complementary goods.

The demand for a good moves in opposite direction if change in the price of its __________ :

Complementary goods

Substitute goods

Inferior goods

Consumption goods

Correct Answer

Option 1

Correct Answer

Explanation →

Q100:

20 June Shift 1

Micro > Consumer Behaviour

Easy

The quantity of a good that the consumer chooses can increase or decrease with the rise in the price of a related goods depending on whether the two goods are substitutes or complementary to each other. Goods which are consumed together are called complementary goods. Examples of goods which are complement to each other include tea and sugar, shoes and socks, pen and ink, etc. Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and decrease in the price of sugar is likely to increase the demand for tea. Similar is the case with other complements. In general, the demand for a good moves in the opposite direction of the price of its complementary goods.

If the price of coffee increases then consumption of tea also increases it implies that tea and coffee are __________ .

Substitute good

Giffen good

Complementary good

Perishable good

Correct Answer

Option 1

Correct Answer

Explanation →

Q101:

20 June Shift 1

Micro > Consumer Behaviour

Easy

The quantity of a good that the consumer chooses can increase or decrease with the rise in the price of a related goods depending on whether the two goods are substitutes or complementary to each other. Goods which are consumed together are called complementary goods. Examples of goods which are complement to each other include tea and sugar, shoes and socks, pen and ink, etc. Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and decrease in the price of sugar is likely to increase the demand for tea. Similar is the case with other complements. In general, the demand for a good moves in the opposite direction of the price of its complementary goods.

Car and petrol are the example of _________ goods .

Normal goods

Inferior goods

Substitute goods

Complementary goods

Correct Answer

Option 4

Correct Answer

Explanation →

Q102:

20 June Shift 1

Micro > Consumer Behaviour

Easy

The quantity of a good that the consumer chooses can increase or decrease with the rise in the price of a related goods depending on whether the two goods are substitutes or complementary to each other. Goods which are consumed together are called complementary goods. Examples of goods which are complement to each other include tea and sugar, shoes and socks, pen and ink, etc. Since tea and sugar are used together, an increase in the price of sugar is likely to decrease the demand for tea and decrease in the price of sugar is likely to increase the demand for tea. Similar is the case with other complements. In general, the demand for a good moves in the opposite direction of the price of its complementary goods.

Those goods which can be used together are called _______ goods .

Substitute goods

Complementary goods

Consumption goods

Capital goods

Correct Answer

Option 2

Correct Answer

Explanation →

Q103:

11 June Shift 3

Micro > Consumer Behaviour

Medium

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"/>

$e_D = \frac{DA}{DB}$

$e_D = \frac{DB}{DA}$

$e_D = \frac{BK}{KA}$

$e_D = \frac{KA}{BK}$

Correct Answer

Option 1

Correct Answer

Explanation →

Q104:

11 June Shift 3

Micro > Consumer Behaviour

Easy

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

Ordinal Utility Analysis

Diminishing Average Utility

Diminishing Marginal Utility

Diminishing Aggregate Utility

Correct Answer

Option 3

Correct Answer

Explanation →

Q105:

11 June Shift 3

Micro > Consumer Behaviour

Easy

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 :

Monotonic preference

Marginal Rate of substitution

Marginal Rate of transformation

Diminishing Marginal Utility

Correct Answer

Option 2

Correct Answer

Explanation →

Q106:

11 June Shift 3

Micro > Consumer Behaviour

Medium

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 :

(A), (B), (D) Only

(B), (C), (E) Only

(A), (C), (D) Only

(C), (D), (E) Only

Correct Answer

Option 3

Correct Answer

Explanation →

Q107:

1 June Shift 1

Micro > Consumer Behaviour

Easy

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

$p_1x_1 + p_2x_2 = M$

$p_1x_1 + p_2x_2 < M$

$p_1x_1 + p_2x_2 \leq M$

$p_1x_1 + p_2x_2 > M$

Correct Answer

Option 3

Correct Answer

Explanation →

Q108:

1 June Shift 1

Micro > Consumer Behaviour

Medium

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 ________.

More of good X

More of good Y

More of both good X and good Y

More of either good X or good Y

Correct Answer

Option 1

Correct Answer

Explanation →

Q109:

30 May Shift 1

Micro > Consumer Behaviour

Easy

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)-(IV), (B)-(III), (C)-(II), (D)-(I)

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(A)-(II), (B)-(III), (C)-(I), (D)-(IV)

(A)-(III), (B)-(II), (C)-(I), (D)-(IV)

Correct Answer

Option 2

Correct Answer

Explanation →

Q110:

30 May Shift 1

Micro > Consumer Behaviour

Easy

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

Quality of the consumer

Income of the consumer

Quantity of the consumer

Producer of the good

Correct Answer

Option 2

Correct Answer

Explanation →

Q111:

30 May Shift 1

Micro > Consumer Behaviour

Medium

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.

(-) 0.025

(-) 0.040

(-) 0.40

(-) 0.25

Correct Answer

Option 3

Correct Answer

Explanation →

Q112:

29 May Shift 2

Micro > Consumer Behaviour

Easy

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

Complementary goods

Normal goods

Inferior goods

Substitute goods

Correct Answer

Option 4

Correct Answer

Explanation →

Q113:

29 May Shift 2

Micro > Consumer Behaviour

Easy

Elasticity of Demand is given by the formula.

$\frac{Q}{\Delta Q} \times \frac{P}{\Delta P}$

$\frac{\Delta Q}{Q} \times \frac{P}{\Delta P}$

$\frac{\Delta P}{P} \times \frac{\Delta Q}{Q}$

$\frac{\Delta Q}{P} \times \frac{Q}{P}$

Correct Answer

Option 2

Correct Answer

Explanation →

Q114:

29 May Shift 2

Micro > Consumer Behaviour

Medium

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

Increase his demand

No change in his demand

Reduce his demand

Shift to other Good.

Correct Answer

Option 3

Correct Answer

Explanation →

Q115:

28 May Shift 2

Micro > Consumer Behaviour

Easy

A consumer is a rational individual who knows, what is good and bad for him/her. So he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.

The indifference curve is :

Positive

Upward

Concave

Convex

Correct Answer

Option 4

Correct Answer

Explanation →

Q116:

28 May Shift 2

Micro > Consumer Behaviour

Easy

A consumer is a rational individual who knows, what is good and bad for him/her. So he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.

All the points on Indifference curve represent :

The same price

Bundles which are considered indifferent by the consumer

Straight line

Bundles which are considered same by the consumer

Correct Answer

Option 2

Correct Answer

Explanation →

Q117:

28 May Shift 2

Micro > Consumer Behaviour

Easy

A consumer is a rational individual who knows, what is good and bad for him/her. So he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.

A rational consumer is the one who has :

Many set of bundles

Monotonic preference

With high budget

Not ready to substitute one good for the other

Correct Answer

Option 2

Correct Answer

Explanation →

Q118:

28 May Shift 2

Micro > Consumer Behaviour

Easy

A consumer is a rational individual who knows, what is good and bad for him/her. So he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.

Which is an example of substitute good ?

Pen and ink

Car and petrol

Tea and Coffee

Shoes and socks

Correct Answer

Option 3

Correct Answer

Explanation →

Q119:

28 May Shift 2

Micro > Consumer Behaviour

Easy

A consumer is a rational individual who knows, what is good and bad for him/her. So he always tries to achieve the best to get maximum satisfaction. Thus, the consumer chooses the set of bundles as per his preference which is best for him. The consumer always prefers to move to a point on the highest possible indifference curve given on the budget set. The slope of the budget line is the rate at which the consumer is able to substitute one good for the other in the market.

If the budget line is tangent to an indifference curve at a point, absolute value of the MRS and the Budget line are __________ at that point.

More

High

Less

Same

Correct Answer

Option 4

Correct Answer

Explanation →

Q120:

CUET Economics 2022 Slot 5

Micro > Consumer Behaviour

Medium

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 :

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

Correct Answer

Option 2

Correct Answer

Explanation →

Q121:

CUET Economics 2022 Slot 4

Micro > Consumer Behaviour

Medium

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 :

Horizontal straight line

Vertical straight line

Downward sloping curve

Rectangular hyperbola

Correct Answer

Option 4

Correct Answer

Explanation →

Q122:

CUET Economics 2022 Slot 4

Micro > Consumer Behaviour

Medium

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 :

(A) and (E) only

(B) and (E) only

(C) and (D) only

(B) and (C) only

Correct Answer

Option 4

Correct Answer

Explanation →

Q123:

CUET Economics 2022 Slot 3

Micro > Consumer Behaviour

Easy

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.

Increase in demand for the good

Decrease in quantity demanded

Decrease in demand for the good

Increase in quantity demanded

Correct Answer

Option 4

Correct Answer

Explanation →

Q124:

CUET Economics 2022 Slot 3

Micro > Consumer Behaviour

Easy

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

1

2

0.2

0.5

Correct Answer

Option 2

Correct Answer

Explanation →

Q125:

CUET Economics 2022 Slot 2

Micro > Consumer Behaviour

Easy

The cause for the demand curve's movement is:

Change in income of the Consumer

Change in price of the given good

Change in population

Change in price of raw material

Correct Answer

Option 2

Correct Answer

Explanation →

Q126:

CUET Economics 2022 Slot 2

Micro > Consumer Behaviour

Easy

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

Moves upward on Demand Curve

Remains unchanged

Decreases

Increases

Correct Answer

Option 4

Correct Answer

Explanation →

Q127:

CUET Economics 2022 Slot 2

Micro > Consumer Behaviour

Medium

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.

Rs 15

Rs 12

Rs 3

Rs 5

Correct Answer

Option 2

Correct Answer

Explanation →

Q128:

CUET Economics 2022 Slot 1

Micro > Consumer Behaviour

Easy

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

Decrease in taxes

Decrease in the income of the consumer

Decrease in the price of its substitute

Decrease in the price of the commodity demanded.

Correct Answer

Option 4

Correct Answer

Explanation →

Q129:

CUET Economics 2022 Slot 1

Micro > Consumer Behaviour

Easy

Budget set of a consumer is defined as:

The collection of all bundles that the consumer can buy with the given income at the prevailing market price.

The collection of all bundles that exactly cost the given income of the consumer at prevailing market price.

The collection of all bundles that the consumer desires to purchase.

The collection of all bundles that lies on budget line.

Correct Answer

Option 1

Correct Answer

Explanation →