Short Answer TypeA consumer consumes only two goods X and Y. State and explain the conditions of consumer's equilibrium with the help of utility analysis.
Explain how the demand for a good is affected by the prices of its related goods. Give examples.
Define 'Market-supply'. What is the effect on the supply of a good when Government imposes a tax on the production of that good? Explain.
What is a supply schedule? What is the effect on the supply of a good when Government gives a subsidy on the production of that good? Explain.
Supply schedule is a table or schedule that illustrates the alternative quantities of a commodity supplied at different prices. If the data from the table is charted, it is known as a supply curve.
Example for a supply schedule:
| Price | Quantity Supplied |
| 100 | 2000 units |
| 110 | 2500 units |
| 120 | 3000 units |
Long Answer TypeWhat is meant by producer's equilibrium? Explain the conditions of producer's equilibrium through the 'total revenue and total cost' approach. Use diagram.
Market for a good is in equilibrium. There is an 'increase' in demand for this good. Explain the chain of effects of this change. Use diagram.
Short Answer Type
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