Consumer's Equilibrium and Demand-Consumer's Equilibrium (CBSE Class-12 Economics): Questions 7 - 14 of 17

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Question number: 7

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

One Liner Question▾

Write in Brief

Give the meaning of equilibrium price.

Question number: 8

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

One Liner Question▾

Write in Brief

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

Question number: 9

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

» Producer Behaviour and Supply » Producer's Equilibrium

Short Answer Question▾

Write in Short

There is a simultaneous ‘decrease’ in demand and supply of a commodity. Explain its effect on equilibrium price.

Question number: 10

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

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Using indifference curves approach, explain the conditions of consumer’s equilibrium.

Explanation

Understanding Consumer’s Equilibrium by Indifference Curve Analysis:

Consumer equilibrium refers to a situation, in which a consumer derives maximum satisfaction, with no intention to change it and subject to given prices and his given income. The point of maximum satisfaction is achieved by studying indifference map and budget line together.… (509 more words) …

Question number: 11

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

Essay Question▾

Describe in Detail

Explain the Law of Variable Proportions through the behavior of both Total Product and Marginal Product. Give reasons.

Explanation

Law of variable proportion is that as more and more of variable factor is used with fixed factors. When marginal product of variable factor starts decreasing. Decreasing Marginal product is zero or negative.

the behavior of both Total Product and Marginal Product

The Behavior of Both Total Product and Marginal Product

This image of the behavior of both Total… (125 more words) …

Question number: 12

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

True-False▾

Following Statement is true or false:

A producer is in equilibrium when total cost and total revenue are equal.

Question number: 13

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

Essay Question▾

Describe in Detail

C = 100 + 0.75Y is a consumption function (Where C = consumption expenditure and Y = national income) and investment expenditure is 800. On the basis of this information calculate:

(i) Equilibrium level of national income

(ii) Saving at equilibrium level of national income.

Explanation

Answer: -

(i) Equilibrium level of national income

Y = C + I

Y = 100 + 0.75Y + 800

0.25Y = 900

Y= Equation = 3600

So, Equilibrium level of national income is Rs. 3600

(iii) Saving at equilibrium level of national income.

Y = C+I

3600 = C… (15 more words) …

Question number: 14

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

Essay Question▾

Describe in Detail

What changes will take place to bring an economy in equilibrium if

(I) planned savings are greater than planned investment and

(ii) Planned savings are less than planned investment

Explanation

(I) planned savings are greater than planned investment: - This type of situation occurs when planned savings are greater than planned investment that is total consumption expenditure is smaller than required purchase supply of goods and services.

Low consumption means the required output is less than planned output. The producer… (179 more words) …

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