# Consumer's Equilibrium and Demand-Demand (CBSE Class-12 Economics): Questions 28 - 37 of 62

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## Question number: 28

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

### Write in Short

How does the nature of a commodity influence its price elasticity of demand? Explain.

## Question number: 29

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

### Write in Short

Give meaning of Excess demand.

## Question number: 30

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

Essay Question▾

### Describe in Detail

Distinguish between Individual demand schedule and Market demand schedule.

### Explanation

 Individual demand schedule Market demand schedule An individual demand schedule means it deferent quantities of a commodity bought by an individual consumer at different possible prices A market demand schedule is… (77 more words) …

## Question number: 31

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

### Write in Short

Give meanings of aggregate demand

## Question number: 32

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

### Write in Short

What happens to total expenditure of a commodity when its price falls and its demand is price elastic?

## Question number: 33

» 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 = 100

= * 100 = 20 %

Elasticity of demand =-3

-3 =

Percentage change in quantity demanded =-3 20 =-60%

So, Demand falls by 60%.

## Question number: 34

» 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 =

=

=-20%

Price elasticity of demand =

=-0.8

## Question number: 35

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

### 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: 36

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

Essay Question▾

### Describe in Detail

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

### Explanation

 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: 37

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

Essay Question▾

### Describe in Detail

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) …

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