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.
EditExplanation
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 demanded | Quantity supplied |
14 | 1 | 7 |
12 | 2 | 6 |
10 | 3 | 5 |
8 | 4 | 4 (Equilibrium) |
6 | 5 | 3 Excess Demand |
… (37 more words, 3 figures) …
Question 121
Question 122
Describe in Detail Subjective▾
Explain the meaning of ‘increase in supply’ and ‘increase in quantity supplied’ with the help of schedule.
EditExplanation
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) |
10 | 110 |
10 | 130 |
10 | 150 |
10 | 180 |
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.
EditExplanation
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 |
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 |
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.
EditExplanation
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) …