Consumer's Equilibrium and Demand-Demand (CBSE Class-12 Economics): Questions 20 - 27 of 62

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Question number: 20

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

Appeared in Year: 2010

Short Answer Question▾

Write in Short

Why is demand for water inelastic?

Question number: 21

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

Appeared in Year: 2012

Short Answer Question▾

Write in Short

What are demand deposits?

Question number: 22

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

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Explain the concept of ‘exceeds demand in macroeconomics also explain the role of ‘open market operation’ in correcting it.

Explanation

Excess demand occur if aggregate demand for output is full employment level of output.

If ADE > ADF 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… (127 more words) …

Question number: 23

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

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Explain the concept of ‘deficient demand’ in macroeconomics. Also explain the role of Bank rate in correcting it.

Explanation

In deficient demand equilibrium level of demand for output is less than full employment level of output.

If ADE < ADF

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… (106 more words) …

Question number: 24

» 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: 25

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

Essay Question▾

Describe in Detail

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: 26

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

Essay Question▾

Describe in Detail

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: 27

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

Essay Question▾

Describe in Detail

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) …

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