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Managerial Economics · Consumer choice & elasticity

BSMS3206 · 8 questions · 6.5 marks · 3 papers

Answer key

Indian Institute of Technology Madras

BS Degree Programme · Examination & Study Paper

BSMS3206 · Managerial Economics

Consumer choice & elasticity

Official Paper

Examination Instructions & Guidelines

Solve on notebook/paper first before checking solutions.
MCQ: Exactly 1 option is correct. Negative marking applies.
NAT: Numerical response. No negative marking.
Scientific calculator allowed for all calculations.
Official answer key is sealed at the end of this sheet.

End Term · 31 Aug 2025 (FN)End Term

Q1MCQ1 Mark·Choose one option
Asked 2 times Key ↓
If the income of the consumer increases and the one of the prices decreases at the same time, the consumer will necessarily be at least as well-off.
1. ATrue
2. BFalse

End Term · 31 Aug 2025 (AN)End Term

Q2MCQ1 Mark·Choose one option
Key ↓
Choose the correct statement
1. AQuasi linear preferences are linear in one good
2. BU = min{ax, by} represents complements
3. CU = ax+by represents substitutes
4. DAll of these
Q3MCQ1 Mark·Choose one option
Asked 2 times Key ↓
If the income of the consumer increases and the one of the prices decreases at the same time, the consumer will not necessarily be at least as well-off.
1. ATRUE
2. BFALSE

Quiz 2 · 3 Aug 2025 (AN)Quiz 2

Read the passage below, then answer Q4–Q5
Based on the above data, answer the given subquestions.
Q4NAT1 Mark·Write the number
Key ↓
Suppose that both Air India and Indigo charge a price of $300 each for a round-trip ticket between Kolkata and Delhi. What is the price elasticity of demand for Indigo flights between Kolkata and Delhi? (please ignore the sign)
Your answer:
Q5NAT1 Mark·Write the number
Key ↓
What is the market-level price elasticity of demand for air travel between Kolkata and Delhi when both airlines charge a price of $300? (please ignore the sign)
Your answer:
Q6MCQ0.5 Marks·Choose one option
Key ↓
In quasi-linear utility functions, the marginal utility of income remains constant
1. ATrue
2. BFalse
Q7MCQ0.5 Marks·Choose one option
Key ↓
A monotonic transformation can alter the shape of indifference curves
1. ATrue
2. BFalse
Q8MCQ0.5 Marks·Choose one option
Key ↓
Marginal utility is unaffected by monotonic transformations
1. ATrue
2. BFalse

Official Key

Master Answer Key & Explanations

Official answer keys from IIT Madras BS past papers. Click any question to review.

Reveal Key

Q1A

Q2D

Q3B

Q42.9 to 3.1

Q50.029 to 0.031

Q6A

Q7B

Q8B

Questions and answer keys are reproduced from the official IIT Madras BS papers. Topics and repeated question types are BTechi’s own grouping. BTechi is not affiliated with IIT Madras.