Consumer's Equilibrium and Demand (CBSE Class-12 Economics): Questions 73 - 82 of 82

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Question number: 73

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

Short Answer Question▾

Write in Short

Give meaning of deficient demand.

Question number: 74

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

Essay Question▾

Describe in Detail

Explain producer’s equilibrium using a schedule. Use total cost and total revenue approach.

Explanation

In this approach a producer strikes his equilibrium when he maximizes his profit at the same cost. There is a big difference between Total Revenue and Total Cost. Schedule of Total Revenue and Total cost and how equilibrium is worked out is given below in example

Output

TR

TC

Profit… (109 more words) …

Question number: 75

» 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: 76

» 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: 77

» 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: 78

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

Essay Question▾

Describe in Detail

Give three sources each of demand and supply of foreign exchange.

Explanation

In that foreign exchange is required for purchasing goods and services from abroad and purchase assets from abroad. The supply of foreign exchange is related to sales of goods and services and export.

The supply of foreign exchange of a given country stems from the sale of foreign services and… (69 more words) …

Question number: 79

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

Essay Question▾

Describe in Detail

What is meant by ‘excess demand’ for a good? Explain the changes which will bring about equilibrium price.

Explanation

Excess of quantity demanded of good or service on given price. Excess demand appears in a market when the quantity demanded by the buyers exceeds the quantity supplied by the sellers.

Equilibrium price and quantity are determined by the intersection of supply and demand. If change in supply, demand and… (188 more words) …

Question number: 80

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

Essay Question▾

Describe in Detail

Explain the problem of ‘excess demand’ in an economy with the help of a diagram. Explain the role of bank rate in correcting it.

Explanation

Excess demand is generated when economy is operating its full employment. Some problem occur in excess demand when aggregate demand is greater than aggregate supply to full employment level.

Increase in prices and in employment and output generate economic problems. In that situation of excess demand is not in the… (262 more words) …

Question number: 81

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

Essay Question▾

Describe in Detail

Distinguish between: Individual demand and market demand

Explanation

Distinguish between Individual demand and market demand

In detail given Distinguish between Individual demand and market demand

Characteristics

Individual demand

market demand

Definition

Individual demand means the demand of one individual.

Market demand means the demand of all individuals in a market.

What it represent?

It represents the quantity of… (52 more words) …

Question number: 82

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

Essay Question▾

Describe in Detail

Distinguish between: ‘Change in demand’ and ‘change in quantity demanded’

Explanation

Distinguish between Change in demand and change in quantity demanded

In detail given Distinguish between Change in demand and change in quantity demanded

Characteristics

Change in demand

Change in quantity demanded

Definition

The demand curve is usually downward sloping and is explained by the law of demand.

The quantity demanded… (78 more words) …

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