CBSE Class-12 Economics: Questions 492 - 499 of 523

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 900.00 or

Question number: 492

» Consumer's Equilibrium and Demand » Consumer's Equilibrium

Essay Question▾

Describe in Detail

A consumer buys 40 units of a good at a price of Rs. 3 per unit. When price rises to Rs. 4 per unit he buys 30 units. Calculate price elasticity of demand by the total expenditure method.

Explanation

Price, Quantity and Total Expenditure

Price, Quantity and Total Expenditure for Prices 2 and 4

Price

Quantity

Total expenditure = Price * Quantity

3

40

120

4

30

120

So, Total expenditure does not change with the change in price and thus price elastically of demand will be one.

Question number: 493

» Consumer's Equilibrium and Demand » Demand » Demand Schedule

Essay Question▾

Describe in Detail

A consumer buys 80 units of a good at a price of Rs. 5 per unit. Suppose price elasticity of demand is (-) 2. At what price will he buy 64 units?

Explanation

We assume that here price = a.

Elasticity of demand = Price÷Quantity×ΔQ/ΔP

So, Price (p) =5, p1 = a, Δp=a5

Quantity (Q) =80 Q1 = 64… (79 more words) …

Question number: 494

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Define opportunity cost.

Question number: 495

» Introductory Microeconomics » What Is an Economy?

Short Answer Question▾

Write in Short

Why does an economic problem arise?

Question number: 496

» Consumer's Equilibrium and Demand » Demand » Demand Schedule

Essay Question▾

Describe in Detail

Explain the effect of increase in income of the consumer on the demand for a good.

Explanation

Assume that if a consumer income increases and his disposable income also increases, this means that the consumer has more money to freely spend on products and the more money a person has more they are willing and able to spend which is why the demand for a good will… (5 more words) …

Question number: 497

» Producer Behaviour and Supply » Producer's Equilibrium

Essay Question▾

Describe in Detail

Explain the meaning and conditions of producer’s equilibrium

Explanation

Producer’s equilibrium: - Equilibrium refers to a state of rest when no change is required. A firm (producer) is said to be in equilibrium when it has no inclination to expand or to contract its output. This state either reflects maximum profits or minimum losses.

Conditions of producer’s equilibrium are… (196 more words) …

Question number: 498

» Introductory Microeconomics » Meaning of Microeconomics and Macroeconomics

Short Answer Question▾

Write in Short

Define microeconomics.

Question number: 499

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Calculate national income and gross national disposable income from the following data:

Calculate national income and gross national disposable income

In this given table in deatail national income and gross national disposable income

-

( Rs. crores)

Current transfers by government

15

Private final consumption expenditure

400

Net current transfers from the rest of the world

20

Government final consumption expenditure

100

Net factor income from abroad

(-) 10

Net domestic capital formation

80

Consumption of fixed capital

50

Net exports

40

Net indirect taxes

60

Explanation

National income = Private final consumption expenditure + Government final consumption expenditure + Consumption of fixed capital

= 400 + 100 + 50

=550

gross national disposable income = National income + Net current transfers from the rest of the world + Net indirect taxes + Net factor income from… (23 more words) …

Sign In