Consumer's Equilibrium and Demand-Demand (CBSE Class-12 Economics): Questions 48 - 57 of 62

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Question number: 48

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

Essay Question▾

Describe in Detail

Explain difference between ’decrease in demand”, and ‘decrease in quantity demanded’ with the help of a demand schedule. Give two cause of decrease in demand.

Explanation

Characteristics

Increase in demand

Increase in quantity demanded

Definition

(1) When demand rises due to change in factors than price is called increase in demand.

(1) When quantity demanded of a commodity rises due to fall in its own price it is called increase in quantity demanded.

What it indicates?… (144 more words) …

Question number: 49

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

Essay Question▾

Describe in Detail

How is the price elasticity of demand of a commodity affected by the number of its substitutes? Explain.

Explanation

The price of demand for good is related to number of substitutes of good available. High substitutes available for a good. Higher its price elasticity of demand.

The price elasticity of demand for good is elastic when good has more number of substitutes present. Increase in price of good pushes… (72 more words) …

Question number: 50

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

Short Answer Question▾

Write in Short

What is meant by excess demand in macroeconomics?

Question number: 51

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

Essay Question▾

Describe in Detail

Explain the geometric method of measuring price elasticity of demand.

Explanation

In geometric method we measure elasticity of demand at different points on demand curve. In this method elasticity of demand at any point on straight line demand curve is ratio of lower segment and upper segment of demand curve.

It is represented as:

ed = Lowe… (121 more words) …

Question number: 52

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

Essay Question▾

Describe in Detail

Draw a straight line demand curve and show on it a point at which

(i) Price elasticity of demand > 1

(ii) Price elasticity of demand < 1

(iii) Price elasticity of demand = 1

Explanation

(i) Price elasticity of demand > 1

Price elasticity of demand >1

Price Elasticity of Demand > 1

This image is of Price elasticity of demand > 1

(ii) Price elasticity of demand < 1

Price elasticity of demand < 1

Price Elasticity of Demand < 1

This iamge of Price elasticity of demand < 1

(iii) Price elasticity of demand… (18 more words) …

Question number: 53

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

Essay Question▾

Describe in Detail

State the law of demand and show it with the help of schedule.

Explanation

Law of demand states that all other factors being equal, as the price of a commodity increases, quantity demanded falls, likewise, as the price of a product falls, quantity demanded increases. There is a negative relationship between price and quantity demanded.

Example is given below:

Price (Rs)

Quantity demanded of… (51 more words) …

Question number: 54

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

Essay Question▾

Describe in Detail

In an economy, aggregate demand is less than aggregate supply. Is the economy in equilibrium? If not, explain the changes that will bring the economy in equilibrium.

Explanation

If aggregate demand (AD) is less than aggregate supply (AS) then economy is not in equilibrium because an economy is in equilibrium when AS = AD. When AD < AS, flow of goods and services in the economy exceed their demand. Some of the goods would remain unsold. So, unnecessary… (49 more words) …

Question number: 55

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

Short Answer Question▾

Write in Short

Give meaning of deficient demand.

Question number: 56

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

Essay Question▾

Describe in Detail

A consumer buys 80 units of a good at a price of Rs. 5 per unit. Suppose price elasticity of demand is (-) 2. At what price will he buy 64 units?

Explanation

We assume that here price = a.

Elasticity of demand = Price÷Quantity×ΔQ/ΔP

So, Price (p) =5, p1 = a, Δp=a5

Quantity (Q) =80 Q1 = 64… (79 more words) …

Question number: 57

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

Essay Question▾

Describe in Detail

Explain the effect of increase in income of the consumer on the demand for a good.

Explanation

Assume that if a consumer income increases and his disposable income also increases, this means that the consumer has more money to freely spend on products and the more money a person has more they are willing and able to spend which is why the demand for a good will… (5 more words) …

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