﻿ A consumer buys 18 units of a good at a price of Rs. 9 per unit.

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## CBSE Class 12 Economics Solved Question Paper 2014

#### Short Answer Type

1.

Unemployment is reduced due to the measures taken by the government. State its economic value in the context of production possibilities frontier.

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2.

Define budget set.

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3.

What is meant by revenue in micro-economics?

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4.

Give meaning of 'returns to a factor.'

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5.

What is perfect oligopoly?

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6.

Explain the central problem 'for whom to produce.'

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# 7.A consumer buys 18 units of a good at a price of Rs. 9 per unit. The price elasticity of demand for the good is (−) 1. How many units the consumer will buy at a price of Rs. 10 per unit? Calculate.

Initial quantity demanded = 18
Initial price =Rs 9 per unit
New price = Rs 10 per unit
Price elasticity of demand (-)1

Price elasticity of demand (ed) = Percentage change in quantity demanded/ Percentage change in price.
ed = (△Q/Q)÷(△P/P)
-1 = (Q2-18)/18 * 9/(10-9)
-1 = (Q2-18)/18 *9/1
(-1/9)*18 = (Q2-18)
-2= (Q2-18)
-2+18 = Q2
Q2 = 16
Therefore, at a price of Rs 10, the consumer will buy 16 units of the goods.

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8.

State the relation between marginal revenue and average revenue.

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9.

State the relation between total cost and marginal cost.

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10.

What is the behaviour of average fixed cost as output is increased? Why is it so?

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