CBSE Class 12 Economics Solved Question Paper 2011

Explain the implication of 'perfect knowledge about market' under perfect competition.

What is meant by 'increase' in supply? 

8 units of a good are demanded at a price of Rs. 7 per unit. Price elasticity of demand is (-)1. How many units will be demanded if the price rises to Rs. 8 per unit? Use expenditure approach of price elasticity of demand to answer this question. 

When a firm is called 'price-taker'? 

Define supply. 

Draw average revenue and marginal revenue curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain. 

What is a market economy? 

Giving examples, explain the meaning of cost in economics. 

Define budget set

Explain the implication of 'freedom of entry and exit to the firms' under perfect competition.