# CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics: Questions 492 - 499 of 523

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## Question number: 492

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 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 =

So, Price (p) =5, p1 = a,

Quantity (Q) =80 Q1 = 64 and here, elasticity of demand is ED =-2

Now, put values to the formula

So, -

So,

… (8 more words) …

## Question number: 494

### Write in Short

Define opportunity cost.

## Question number: 495

### 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

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

### Write in Short

Define microeconomics.

## Question number: 499

Essay Question▾

### Describe in Detail

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

 - ( 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) …

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