CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand

Refer to CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand. We have provided exhaustive High Order Thinking Skills (HOTS) questions and answers for Class 12 Economics Part A Microeconomics Chapter 2 Theory of Consumer Behaviour. Designed for the 2025-26 exam session, these expert-curated analytical questions help students master important concepts and stay aligned with the latest CBSE, NCERT, and KVS curriculum.

Part A Microeconomics Chapter 2 Theory of Consumer Behaviour Class 12 Economics HOTS with Solutions

Practicing Class 12 Economics HOTS Questions is important for scoring high in Economics. Use the detailed answers provided below to improve your problem-solving speed and Class 12 exam readiness.

HOTS Questions and Answers for Class 12 Economics Part A Microeconomics Chapter 2 Theory of Consumer Behaviour

Very Short Answer Type Questions(1 Mark)

Question. How does availability of substitute good affect the elasticity of demand?
Answer. The demand of a good becomes elastic if its substitute good is available in the market.

Question. Demand of good ‘X’ falls due to increase in the income of the consumer what type of good ‘X’ is?
Answer. Good ‘X’ is an inferior good.

Question. What will be the impact on demand of the good due to increase in price of the substitute good?
Answer. The demand of the good will increase.

Question. A rise in price of a good results in a decrease in expenditure of it. Is its demand elastic or inelastic?
Answer. Elastic.
 
Question. What is meant by budget set.
Answer. The set of bundles available to the consumer with his given income at prevailing market price is called the budget set.

Question. What is meant by market demand?
Answer. Market demand is the sum of total demand of all the consumers in the market at a particular time and at a given price.

Question. Define demand schedule.
Answer. Demand schedule is a tabular representation which represent different quantities of the commodity demanded at different prices.
 
Question. When is demand inelastic?
Answer. When percentage change in quantity demanded is less than percentage change in price, the demand is said to be inelastic.

Question. Give two examples of normal goods & inferior goods.
Answer. Normal goods – Rice, Wheat
Inferior goods – coarse grain, coarse cloth.
 
Short Answer Type Questions

Question. Given price of a good, how does a consumer decide as to how much of that good to buy?
Answer. Consumer purchases up to the point where marginal utility is equal to the price (MU=P). So long as marginal utility is greater than price, he keeps on purchasing. As he makes purchases MU falls and at a particular quantity of the good MU becomes equal to price. Consumer purchases up to this point.
 
Question. Explain any four factors that affect price elasticity of demand.
Answer. 1. Nature of Commodity : Necessaries like Salt, Kerosene oil etc. have inelastic demand and luxuries have elastic demand.
2. Availability of substitutes : Demand for goods which have close substitutes is relatively more elastic and goods without close substitutes have less elastic demand.
3. Different uses : Commodities that can be put to different use have elastic demand for instance electricity has different uses.
4. Habit of the consumer : Goods to which consumers become habitual will have inelastic demand.
Examples – Liquor and Cigarette.
Part A Microeconomics Chapter 01 Introduction to Micro Economics
CBSE Class 12 Economics HOTs Introduction
Part A Microeconomics Chapter 03 Production and Costs
CBSE Class 12 Economics HOTs Production and Costs
Part A Microeconomics Chapter 05 Market Equilibrium
CBSE Class 12 Economics HOTs Market Equilibrium
Part A Microeconomics Chapter 06 Non Competitive Markets
CBSE Class 12 Economics HOTs Non Competitive Markets
Part B Macroeconomics Chapter 02 National Income Accounting
CBSE Class 12 Economics HOTs Economics Forms of Market and Price Determination
Part B Macroeconomics Chapter 06 Open Economy Macroeconomics
CBSE Class 12 Economics HOTs for Balance of Payment

HOTS for Part A Microeconomics Chapter 2 Theory of Consumer Behaviour Economics Class 12

Students can now practice Higher Order Thinking Skills (HOTS) questions for Part A Microeconomics Chapter 2 Theory of Consumer Behaviour to prepare for their upcoming school exams. This study material follows the latest syllabus for Class 12 Economics released by CBSE. These solved questions will help you to understand about each topic and also answer difficult questions in your Economics test.

NCERT Based Analytical Questions for Part A Microeconomics Chapter 2 Theory of Consumer Behaviour

Our expert teachers have created these Economics HOTS by referring to the official NCERT book for Class 12. These solved exercises are great for students who want to become experts in all important topics of the chapter. After attempting these challenging questions should also check their work with our teacher prepared solutions. For a complete understanding, you can also refer to our NCERT solutions for Class 12 Economics available on our website.

Master Economics for Better Marks

Regular practice of Class 12 HOTS will give you a stronger understanding of all concepts and also help you get more marks in your exams. We have also provided a variety of MCQ questions within these sets to help you easily cover all parts of the chapter. After solving these you should try our online Economics MCQ Test to check your speed. All the study resources on studiestoday.com are free and updated for the current academic year.

Where can I download the latest PDF for CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand?

You can download the teacher-verified PDF for CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand from StudiesToday.com. These questions have been prepared for Class 12 Economics to help students learn high-level application and analytical skills required for the 2025-26 exams.

Why are HOTS questions important for the 2026 CBSE exam pattern?

In the 2026 pattern, 50% of the marks are for competency-based questions. Our CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand are to apply basic theory to real-world to help Class 12 students to solve case studies and assertion-reasoning questions in Economics.

How do CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand differ from regular textbook questions?

Unlike direct questions that test memory, CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand require out-of-the-box thinking as Class 12 Economics HOTS questions focus on understanding data and identifying logical errors.

What is the best way to solve Economics HOTS for Class 12?

After reading all conceots in Economics, practice CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand by breaking down the problem into smaller logical steps.

Are solutions provided for Class 12 Economics HOTS questions?

Yes, we provide detailed, step-by-step solutions for CBSE Class 12 Economics HOTs Consumers Equilibrium And Demand. These solutions highlight the analytical reasoning and logical steps to help students prepare as per CBSE marking scheme.