Consumer's Equilibrium and Demand-Demand [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 19 - 25 of 62
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Question 19
Appeared in Year: 2011
Describe in Detail Subjective▾
Explain the role of the following in correcting ‘deficit demand’ in an economy: (i) Open market operations. (ii) Bank rate.
EditExplanation
(i) Open Market Operations as an Instrument to correct Deficit Demand
Open Market Operations indicate to the buying and selling of securities in general public or to the commercial banks in an open market. Deficit demand and the central bank purchases securities in the open market with purchase of securities and with the additional money the level o…
… (86 more words) …
Question 20
Appeared in Year: 2009
Write in Short Short Answer▾
When is the demand of a commodity said to be inelastic?
EditQuestion 21
Question 22
Question 23
Appeared in Year: 2012
Describe in Detail Subjective▾
Explain the concept of “exceeds demand in macroeconomics” also explain the role of ‘open market operation’ in correcting it.
EditExplanation
Excess demand occur if aggregate demand for output is full employment level of output.
If > Excess demand indicate aggregate demand for output which is more than full employment of output. Excess aggregate demand is the deference between aggregate demand and full employment level of deman…
… (107 more words, 8 figures) …
Question 24
Appeared in Year: 2012
Describe in Detail Subjective▾
Explain the concept of ‘deficient demand’ in macroeconomics. Also explain the role of Bank rate in correcting it.
EditExplanation
In deficient demand equilibrium level of demand for output is less than full employment level of output.
If <
It means deficit demand include when aggregate demand of output is less than full employment of demand. Deflationary gap measure amount of deficiency in aggregate demand.
It represe…
… (92 more words, 1 figure) …
Question 25
Appeared in Year: 2012
Describe in Detail Subjective▾
A consumer buys 20 units of good at a price of ₹ 5 per unit. He incurs an expenditure of ₹ 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.
EditExplanation
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 =
… (52 more equations) …