# Consumer's Equilibrium and Demand (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 37 - 45 of 82

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## Question number: 37

» Consumer's Equilibrium and Demand » Demand » Elasticity of Demand

Appeared in Year: 2012

Essay Question▾

### Describe in Detail

A consumer buys 20 units of good at a price of Rs. 5 per unit. He incurs an expenditure of Rs. 120 when he buys 24 units. Calculate price elasticity of demand using the percentage method. Comment upon the likely shape of demand curve based on this information.

### Explanation

 Price (P) Quantity (Q) Total Expenditure 5 20 120 5 24 120

So, Total expenditure = Price Quantity

120 = Price 24

Price = = 5

Elasticity of demand =

= 100

=

… (104 more words) …

## Question number: 38

» Consumer's Equilibrium and Demand » Demand » Elasticity of Demand

Essay Question▾

### Describe in Detail

When price of a good falls by 10 percent, its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percentage method.

### Explanation

%change in price = 10

So, price elasticity of demand by the percentage method is 2.5

… (113 more words) …

## Question number: 39

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

Essay Question▾

### Describe in Detail

What is ‘deficient demand’ in macroeconomics? Show diagramatically. Explain the role of open market operations in correcting

### Explanation

Deficient Demand is generated when economy is operating below its full – employment capacity and situation arises in aggregate planned expenditure will fall short of aggregate supply or real income if full employment were to be achieved.

The amount, by which aggregate expenditure falls short of the level needed to generate equilibrium national

… (107 more words) …

## Question number: 40

» Consumer's Equilibrium and Demand » Demand » Determinants of Demand

Essay Question▾

### Describe in Detail

Demand for electricity has “increased”. However supply cannot be increased due to lack of resources. Explain how, in any two ways, demand for electricity can be “decreased”.

### Explanation

Demand for electricity decrease in following ways:

(1) Use energy saving electrical appliances: - In this decreasing demand for electricity. Government may charge high price for use of electricity during highest hours and low price during non-highest hours.

(2) Use alternate sources of energy like solar energy: - Government may offer subsidy

… (17 more words) …

## Question number: 41

» Consumer's Equilibrium and Demand » Demand » Elasticity of Demand

### Write in Short

How does the nature of a commodity influence its price elasticity of demand? Explain.

## Question number: 42

» Consumer's Equilibrium and Demand » Demand » Determinants of Demand

### Write in Short

Give meaning of Excess demand.

## Question number: 43

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

Essay Question▾

### Describe in Detail

Distinguish between Individual demand schedule and Market demand schedule.

### Explanation

 Individual demand schedule Market demand schedule An individual demand schedule means it deferent quantities of a commodity bought by an individual consumer at different possible prices A market demand schedule is the addition of individual demand schedules for a definite commodity

… (67 more words) …

## Question number: 44

» Consumer's Equilibrium and Demand » Demand » Determinants of Demand

### Write in Short

Give meanings of aggregate demand

## Question number: 45

» Consumer's Equilibrium and Demand » Demand » Determinants of Demand