First state that budget set depends on income and prices. Then income increases while prices remain constant. As a result, consumers can buy more goods. The new budget line is then:
P1X1+P2X2=M′
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 =…
CUET UG 2025 — Economics Micro
2025mcqmedium
Arrange the following statements showing the change in budget set due to change in income.
(A) The equation of the budget line is P1X1+P2X2=M′.
(B) Consumer's income increases from M to M′, but the price of goods remains constant.
(C) The set of available bundles depends upon prices and the income of the consumer.
(D) Consumers can buy more of the goods at the prevailing market prices.
Choose the correct answer from the options given below:
Official previous-year question
Held on 3 Jun 2025 · Verified 13 Jul 2026.
Options
- A
(A), (B), (C), (D)
- B
(B), (A), (C), (D)
- C
(B), (A), (D), (C)
- D
(C), (B), (D), (A)
Did you get this right?
Sign in to track your attempts and accuracy.
Your note
Sign in to keep a private note on this question. Nothing you write is ever public.
CUET UG Micro in other years
More CUET UG Micro questions
The point on the supply curve at which a firm earns only normal profit is called ...........
2025easy
The price and quantity demanded are __________
2025medium
Select the INCORRECT feature of the market with respect to perfect competition. 1. The market consists of a large number of buyers and sellers. 2. Entry into the market as well as exit from the market are free for firms. 3. Buyers are price makers. 4. There is perfect knowledge.
2025medium
The allocation of scarce resources and the distribution of the final goods and services are the _____ of any economy. 1. States problems 2. Consumption problems 3. Central problems 4. Production problems
2025easy
Any allocation of resources by the society would result in the _____ of a particular combination of different goods and services.
2025easy
Other Economics topics for CUET UG
Keep practicing Micro
Work through every CUET UG Micro PYQ, year by year.