Consumer's Equilibrium and Demand (CBSE 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▾

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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 elasticity of demand

Table of price elasticity of demand

Price (P)

Quantity (Q)

Total Expenditure

5

20

120

5

24

120

So, Total expenditure = Price × Quantity

120 = Price × 24

Price = 12024 = 5

Elasticity of demand = Percen… (137 more words) …

Question number: 38

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

Essay Question▾

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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

Es(elasticity)=%changeinQuantitySupplied%Changeinp… (68 more words) …

Question number: 39

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

Essay Question▾

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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… (105 more words) …

Question number: 40

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

Essay Question▾

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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… (19 more words) …

Question number: 41

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

Short Answer Question▾

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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

Short Answer Question▾

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Give meaning of Excess demand.

Question number: 43

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

Essay Question▾

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Distinguish between Individual demand schedule and Market demand schedule.

Explanation

Distinguish between Individual demand schedule and Market demand schedule

In detail Individual demand schedule and Market demand schedule difference.

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… (77 more words) …

Question number: 44

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

Short Answer Question▾

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Give meanings of aggregate demand

Question number: 45

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

Short Answer Question▾

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What happens to total expenditure of a commodity when its price falls and its demand is price elastic?

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