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Questions › CUET-PG › CUET-PG 2026 › Q52
4 marks, −1Microeconomics › Consumer preferences and utility › Consumer surplus and reservation pricesHardabout 1 min

CUET-PG 2026 Question 52: Consumer preferences and utility

Consider the following statements:

A. Consumer surplus equals area under demand curve above price line.

B. Marshall's measure assume constant marginal utility of money.

C. Hicksian compensatory variation is better welfare measure than Marshallian surplus.

D. Consumer surplus is always zero for perfectly elastic demand.

E. Price elasticity of demand is unitary when total revenue (TR) is maximum.

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Answer and worked solution

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Consumer preferences and utility has come up 93 times in 7 exams since 2007.

What this question tests

This question is on Consumer surplus and reservation prices, part of Consumer preferences and utility in Microeconomics.

The gap between what a consumer is willing to pay and what is paid, measured from a demand curve.

TestStop has 10 past-paper questions on this subtopic.

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