Match List-I with List-II List-

CUET Preparation Today

Start Free Mocks

Home Questions B4C34BYKUC

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Match List-I with List-II

List-I	List-II
(A) Price elasticity of demand will be equal to 1	(I) When expenditure increases with a rise in price.
(B) Price elasticity of demand will be equal to 0	(II) When expenditure decreases with a rise in price.
(C) Price elasticity of demand will be more than 1	(III) When the quantity demanded doesn't change with the change in price.
(D) Price elasticity of demand will be less than 1	(IV) When expenditure doesn't change with the change in price.

Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is Option (3) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

List-I	List-II
(A) Price elasticity of demand will be equal to 1	(IV) When expenditure doesn't change with the change in price.
(B) Price elasticity of demand will be equal to 0	(III) When the quantity demanded doesn't change with the change in price.
(C) Price elasticity of demand will be more than 1	(II) When expenditure decreases with a rise in price.
(D) Price elasticity of demand will be less than 1	(I) When expenditure increases with a rise in price.

(A) Price elasticity of demand will be equal to 1 matches with (IV) When expenditure doesn't change with the change in price. This is known as unit elastic demand. The percentage change in quantity demanded is equal to the percentage change in price, so total expenditure remains constant.
(B) Price elasticity of demand will be equal to 0 matches with (III) When the quantity demanded doesn't change with the change in price. This is perfectly inelastic demand. The demand curve is a vertical line, and consumers will buy the same quantity regardless of the price.
(C) Price elasticity of demand will be more than 1 matches with (II) When expenditure decreases with a rise in price. This is elastic demand. The percentage decrease in quantity demanded is greater than the percentage increase in price, causing total expenditure to fall.
(D) Price elasticity of demand will be less than 1 matches with (I) When expenditure increases with a rise in price. This is inelastic demand. The percentage decrease in quantity demanded is less than the percentage increase in price, causing total expenditure to rise.