Producer Behaviour and Supply-Supply (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 25 - 33 of 39

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Question number: 25

» Producer Behaviour and Supply » Supply » Market Supply

Short Answer Question▾

Write in Short

What is market supply’?

Question number: 26

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16 percent rise in the price X results in a 40 percent rise in its supply. If the price of Y falls by 8 percent, calculate the percentage fall in its supply.

Explanation

Elasticity of supply = Equation

Elasticity of supply of X = Equation =2.5

Than

Elasticity of supply of Y = Equation (elasticity of supply of X)

Elasticity of supply of Y = Equation =1.25

Elasticity of supply of Y =

Equation

1.25 = Equation

Equation = 1.25 Equation 8 =

… (16 more words) …

Question number: 27

» Producer Behaviour and Supply » Supply » Supply Schedule

Essay Question▾

Describe in Detail

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

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 demanded

Quantity supplied

14

1

7

12

2

6

10

3

5

8

4

4 (Equilibrium)

6

5

3 Excess Demand

4

6

… (50 more words) …

Question number: 28

» Producer Behaviour and Supply » Supply » Supply Curve

Short Answer Question▾

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Give one reason for rightward shift in supply curve.

Question number: 29

» Producer Behaviour and Supply » Supply » Supply Schedule

Essay Question▾

Describe in Detail

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

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)

10

110

10

130

10

150

10

180

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

Increase

… (32 more words) …

Question number: 30

» Producer Behaviour and Supply » Supply » Market Supply

Essay Question▾

Describe in Detail

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 Rs. 10 per unit to Rs. 11 per unit.

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 = Equation Equation =2 Percentage change in price

If Elasticity of supply of commodity A 1 = Elasticity of

… (102 more words) …

Question number: 31

» Producer Behaviour and Supply » Supply » Supply Schedule

Short Answer Question▾

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How is the supply of commodity affected by changes in the prices of other commodities? Explain.

Question number: 32

» Producer Behaviour and Supply » Supply » Supply Curve

Short Answer Question▾

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What causes a downward movement along a supply curve?

Question number: 33

» Producer Behaviour and Supply » Supply » Elasticity of Supply

Essay Question▾

Describe in Detail

Commodities X and Y have equal price elasticity of supply. The supply of X rises from 400 units to 500 units due to a 20 percent rise in its price. Calculate

Explanation

In this given Initial quantity supplied = 400 units and final quantity supplied = 500 units and rise in price = 20%

%change in quantity of x = Equation

= Equation Equation 100 = 25%

Elasticity of supply of X = Equation

Equation =1.25

Elasticity of supply of X =

… (39 more words) …

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