Producer Behaviour and Supply [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 120 - 126 of 174

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Question 120

Describe in Detail Subjective▾

With the help of demand and supply schedule, explain the meaning of excess demand and its effect on price of commodity.

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Explanation

Excess demand is when market demand exceeds market supply at a market price. It is represented as

Quantity of demand > Quantity of supply

Price (Rs)Quantity demandedQuantity supplied
1417
1226
1035
844 (Equilibrium)
653 Excess Demand

… (37 more words, 3 figures) …

Question 121

Write in Short Short Answer▾

Give one reason for rightward shift in supply curve.

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Question 122

Describe in Detail Subjective▾

Explain the meaning of ‘increase in supply’ and ‘increase in quantity supplied’ with the help of schedule.

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Explanation

Increase in supply of good refer to rise in supply of good because of some changes in determine other than price of good

Price (Rs)Quantity supplied (units)
10110
10130
10150
10180

In this given schedule when price is constant than supply of good increase.

Increase in quantity supplied of good refer rise in supply of good because of rise in price with rem…

… (6 more words) …

Question 123

Describe in Detail Subjective▾

Explain the condition of consumer՚s equilibrium in case of (I) single commodity and (ii) two commodities. Use utility approach.

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Explanation

The condition of consumer՚s equilibrium in case of

(i) single commodity: In this case of single commodity, a consumer contain equilibrium when the utility from additional unit of rupee spent on commodity become equal to Marginal utility of Money

Marginal utility of rupee spent on commodity is derived from additional unit of rupee spent on commodity

Ma…

… (102 more equations, 13 figures) …

Question 124

Statement True-False▾

The difference between average total cost and average variable cost decrease with decrease in the level of output.

Choices

Choice (4)Response

a.

False

b.

True

c.

All of the above

d.

Question does not provide sufficient data or is vague

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Question 125

Statement True-False▾

When marginal revenue is zero, average revenue will be constant.

Choices

Choice (4)Response

a.

False

b.

True

c.

None of the above

d.

Question does not provide sufficient data or is vague

Edit

Question 126

Describe in Detail Subjective▾

The ratio of elasticity of supply of commodities A and B is 1: 1.5. 20 percent fall in price of a results in a 40 percent fall in its supply. Calculate the percentage increase in supply of B if its price rises from ₹ 10 per unit to ₹ 11 per unit.

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Explanation

Percentage change in price of commodity A = 20 per cent

Percentage change in supply of commodity A = 40 per cent

Thus, price elasticity of supply of commodity A is =

… (87 more words) …