Market and Price Determination (CBSE Class-12 Economics): Questions 23 - 32 of 40

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Question number: 23

» Market and Price Determination » Market Types

Short Answer Question▾

Write in Short

Define market.

Question number: 24

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Market for a good is in equilibrium. What is the effect on equilibrium price and quantity if the proportionate increase in market demand is greater than increase in market supply? Use diagram.

Explanation

Market for a good is in equilibrium when proportionate increase in market demand is greater than increase in market supply the equilibrium price and quantity will rise.

market supply the equilibrium price and quantity

Market Supply the Equilibrium Price and Quantity

This image of market supply the equilibrium price and quantity

In that figure D1D1 is demand… (62 more words) …

Question number: 25

» Market and Price Determination » Market Equilibrium

Short Answer Question▾

Write in Short

Define ‘Equilibrium price’.

Question number: 26

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Given the market price of good, how does a consumer decide as to how many units of that good to buy? Explain.

Explanation

Given the market price of good, how does a consumer decide as to how many units of that good to buy it is based on marginal. Consumer purchases many units of good where marginal utility of rupee spent in a good and it is equal to marginal utility of money… (80 more words) …

Question number: 27

» Market and Price Determination » Monopolistic Competition

Essay Question▾

Describe in Detail

Explain the implications of the following:

(i) The feature ‘differentiated product’ under monopolistic competition.

(ii) The feature ‘large number of sellers’ under perfect competition.

Explanation

(i) The feature ‘differentiated product’ under monopolistic competition.

some generation in position to perform some degree of monopoly with product differeentiation.

In Production differentiation differentiating the products on brand, color, size. The product of firm is close and it is not perfect subtitute of other firm.

This implication is buyers… (76 more words) …

Question number: 28

» Market and Price Determination » Market Types

Essay Question▾

Describe in Detail

What are ‘open market operations’? How do these work as a method of credit control?

Explanation

Open market operation means when central bank directly resorts to buy and sell securities in money market.

Credit control of bank has two types:

Quantitative credit control and Qualitative credit control

It establishes the economy by destroying the features which are responsible for increase in prices. Exercise effective control on… (2 more words) …

Question number: 29

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

A consumer consumes only two goods. Explain his equilibrium with the help of utility approach.

Explanation

A consumer is in state of equilibrium when we maximize his satisfaction by spending his given income on different goods and services.

If buying only two goods, the consumer strike on equilibrium when: MUxPx = MUYPY = MUM

It implies… (26 more words) …

Question number: 30

» Market and Price Determination » Perfect Competition

Essay Question▾

Describe in Detail

Why is a firm under Perfect competition a price-taker? Explain

Explanation

A firm under perfect competition is a price –taker because of the existence of large number of sellers in perfect competitive market selling homogenous products. In large number of seller arise a situation of free and perfect competition in market.

The market price is determined by hands of market by… (35 more words) …

Question number: 31

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Define equilibrium price of commodity. How is it determined? Explain with the help of schedule.

Explanation

Equilibrium price means market demand and market supply are equal and intersect market demand and market supply.

Its schedule is given below:

Price (Rs)

Market Demand

Market Supply

10

35

2

20

30

5

30

25

10

40

20

13

50

15

15

In this schedule price increases when Market… (37 more words) …

Question number: 32

» Market and Price Determination » Monopolistic Competition

Essay Question▾

Describe in Detail

Explain two points of distinction between monopoly and monopolistic competition.

Explanation

Characteristics

Monopoly competition

monopolistic competition

Number of Buyers and sellers

In this only single sellers and large number of buyers in demand.

In this large number of sellers and buyers both.

Nature of products

It is the main producer of the commodity in the market so it has no close… (14 more words) …

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