Research has shown an effectiveness of reasoning (e.g. Chain-of-Thought), planning (e.g. SelfAsk) and retrieval augmented generation strategies to improve performance of Large Language Models (LLMs) on various tasks, such as question answering. However, using a single fixed strategy for answering all different kinds of questions is sub-optimal in performance and inefficient in terms of generated tokens and retrievals. In our work, we propose a novel technique, DyPlan, to induce a dynamic strategy selection process in LLMs for cost-effective question-answering. DyPlan incorporates an initial decision step to select the most suitable strategy conditioned on the input question and guides the LLM’s response generation accordingly. We extend DyPlan to DyPlan-verify, adding an internal verification and correction process to further enrich the generated answer. Experimentation on three prominent multi-hop question answering (MHQA) datasets reveals how DyPlan can improve model performance by 7-13% while reducing the cost by 11-32% relative to the best baseline model.