CUET UG 2025 — Economics Micro

For a linear demand curve:

$$q = a - bp$$q=a−bp

Elasticity of demand:

$$e_d = \dfrac{dq}{dp} \cdot \dfrac{p}{q}$$ed​=dpdq​⋅qp​

$$= (-b) \cdot \dfrac{p}{a - bp}$$=(−b)⋅a−bpp​

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At different points on the same demand curve:

At $p = 0$p=0

$$e_d = 0$$ed​=0

Thus, $|e_d| = 0$∣ed​∣=0 → (D)

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In the lower portion of the curve:

$|e_d| < 1$∣ed​∣<1 → (B)

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At midpoint:

$|e_d| = 1$∣ed​∣=1 → (A)

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In the upper portion:

$|e_d| > 1$∣ed​∣>1 → (C)

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Arranging in ascending order:

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

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Correct answer: Option 2