One Word AnswersWhen price of a commodity X falls by 10 per cent, its demand rises from 150 units to 180 units. Calculate its price elasticity of demand. How much should be the percentage fall in its price so that its demand rises from 150 to 210 units ?
Complete the following table :
| output units | total cost | average variable cost | marginal cost | average fixed cost |
| 0 | 30 | |||
| 1 | 20 | |||
| 2 | 68 | |||
| 3 | 84 | 18 | ||
| 4 | 18 | |||
| 5 | 125 | 19 | 6 |
Short Answer TypeThe demand of a commodity when measured through the expenditure approach is inelastic. A fall in its price will result in :
(choose the correct alternative)
(a) no change in expenditure on it.
(b) increase in expenditure on it.
(c) decrease in expenditure on it.
(d) any one of the above
As we move along a downward sloping straight line demand curve from left to right, price elasticity of demand : (choose the correct alternative)
(a) remains unchanged
(b) goes on falling
(c) goes on rising
(d) falls initially then rises
Average revenue and price are always equal under : (choose the correct alternative)
(a) perfect competition only
(b) monopolistic competition only
(c) monopoly only
(d) all market forms
Distinguish between microeconomics and macroeconomics.
| Basis of difference | Micro Economics | Macro Economics |
| Meaning | Microeconomics is the study of economics at an individual, group or company level. | Macroeconomics, on the other hand, is the study of a national economy as a whole. |
| Focus | Microeconomics focuses on issues that affect individuals and companies. This could mean studying the supply and demand for a specific product, the production that an individual or business is capable of, or the effects of regulations on a business. | Macroeconomics focuses on issues that affect the economy as a whole. Some of the most common focuses of macroeconomics include unemployment rates, the gross domestic product of an economy, and the effects of exports and imports. |
| Example | An example of a microeconomic issue could be the effects of raising wages within a business. | where as in macroeconomics, a common issue is the effects of certain policies on the national or regional economy. |
Show that demand of a commodity is inversely related to its price.
Explain with the help of utility analysis.
Or
Why is an indifference curve negatively sloped? Explain.
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