The price elasticity of demand for a good is − 0.4. If its price increases by 5 percentage, by what percentage will its demand fall? Calculate. 

Explain the conditions of producer’s equilibrium with the help of a numerical example. 

Explain consumer’s equilibrium with the help of Indifference Curve Analysis.

Explain “large number of buyers and sellers” features of a perfectly competitive market. 

Explain the Law of Variables Proportions with the help of total product and marginal product curves. 

Giving reasons, state whether the following statements are true or false.
A monopolist can sell any quantity he likes at a price.

Explain the relationship between prices of other goods and demand for the given period. 

Explain any two factors that affect the price elasticity of demand. Give suitable examples.

Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effect using production possibilities curve.