CUET Economics: MicroConsumer Behaviour. Free, no login required.

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

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Match List-I with List-II

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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

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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.

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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.

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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.

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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.

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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.