Consumer's Equilibrium and Demand-Demand (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 28 - 37 of 62

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Question number: 28

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

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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

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Give meaning of Excess demand.

Question number: 30

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

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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 the addition of individual demand schedules for a definite commodity

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Question number: 31

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

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Give meanings of aggregate demand

Question number: 32

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

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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

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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%.

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Question number: 34

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

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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

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Question number: 35

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

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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

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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 the level of full employment. Excess demand is a situation which occurs because of the excess of aggregate demand for output over the supply of output at the level of full employment

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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 increases, the consumer shifts his demand to the other good i

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