Consumer's Equilibrium and Demand (CBSE Class-12 Economics): Questions 46 - 53 of 82

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Question number: 46

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

Essay Question▾

Describe in Detail

Price elasticity of demand of a good is (-) 3. If the price rises from Rs. 10 per unit to Rs. 12 per unit, what is the percentage change in demand?

Explanation

Elasticity of demand = Percentage change in quantity demanded/Percentage change in price

Percentage change in price = PP × 100

= 121010 * 100 = 20 %

Elasticity of demand =-3

-3 = Percentagech… (37 more words) …

Question number: 47

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

Essay Question▾

Describe in Detail

Calculate the price elasticity of demand for a commodity when its price increases by 25 % and quantity demanded falls from 150 units to 120 units.

Explanation

Here, Percentage change in price = 25%

Percentage change in quantity demanded = ΔQQ×100

120150150×100

= 30150×100

=-20%

Price elasticity of demand = percentagechan… (39 more words) …

Question number: 48

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

Short Answer Question▾

Write in Short

What happens to equilibrium price of a commodity if there is an ‘increase’ in its demand and ‘decrease’ in its supply?

Question number: 49

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

Essay Question▾

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Distinguish between ‘deficient demand’ and ‘excess demand’ in macroeconomics. Explain the role of open market operations in correcting deficient demand

Explanation

Distinguish between deficient demand and excess demand in macroeconomics.

Distinguish between deficient demand and excess demand in macroeconomics in detail

characteristics

Deficient demand

Excess demand

Situation of Demand

Deficient demand is a situation it is occurs when excess of aggregate supply of output over the aggregate demand for output at… (154 more words) …

Question number: 50

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

Essay Question▾

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Explain the effect of rise in the prices of related goods on the demand of a good.

Explanation

Rise in price of related goods: - The related goods can be classified into following categories.

  • Substitute Goods: - Substitute goods refer to those goods that can be consumed in place of another good.
  • For Example tea and sugar. In case of substitute goods, if the price of one good… (212 more words) …

Question number: 51

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

Essay Question▾

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What is the relation between good X and good Y in each case, if with fall in price of X demand for good Y (i) rises and (ii) falls? Give reason.

Explanation

  1. With fall in the price of x, demand for good Y rises: - This situation suggests that these are supplementary goods because supplementary goods are those which are used together for example car and petrol.
  2. With fall in the price of X, demand for good Y falls: - This situation… (29 more words) …

Question number: 52

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

Short Answer Question▾

Write in Short

Price elasticity of demand for good is (-) 2. The consumer buys a certain quantity of this good at a price of Rs. 8 per unit. When the price falls he buys 50 percent more quantity. What is the new price?

Question number: 53

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

Essay Question▾

Describe in Detail

When price of a good falls from Rs. 10 per unit to Rs. 9 per unit, its demand rises from 9 units to 10 units. Compare expenditures on the good to find price elasticity of demand.

Explanation

price elasticity of demand

Calculatetion of price elasticity of demand.

Price (Rs)

Quantity demanded (units)

Total Expenditure (Rs)

10

9

90

9

10

90

So, price elasticity of demand is equal to unity.

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