# Q.1 Distinguish between increase in demand and increase in quantity demanded of a commodity.

Size: px
Start display at page:

Download "Q.1 Distinguish between increase in demand and increase in quantity demanded of a commodity."

Transcription

1 Q.1 Distinguish between increase in demand and increase in quantity demanded of a commodity. Q. 2 Given price of a good, how does a consumer decide as to how much of that good to buy? Q. 3 A consumer consumers only two goods and. State & explain the conditions of consumer s equilibrium with the help of utility analysis.

2 Q. 4 Explain how the demand for a good is affected by the price of its related goods. Give examples. Q. 5 Distinguish between normal goods and inferior goods. Give example also. Q. 6 Explain any four factors that affect price elasticity of demand.

3 Q. 7 Explain relationship between total utility and marginal utility with the help of a schedule. Q. 8 Define marginal utility. State the law of diminishing merginal utility. Q. 9 Explain the three properties of indifference curves.

4 Q. 10 Explain the conditions of consumer s equilibrium using indifference curve analysis. Use diagram.

5 Ans. 1 Answers When demand increases at given price then it is called increase in demand. On the other hand, when demand increases by decrease in the price of a commodity then it is called increase in quantity demand. Ans. 2 Consumer purchases upto the point where marginal utility is equal to the price (=). So long as marginal utility is greater than price, he keeps on purchasing. As he makes purchases falls and at a particular quantity of the good becomes equal to price. Consumer purchases upto this point. Ans. 3 There are two conditions of consumer equilibrium : (i) = OR Explanation : M = If, (ii) the consumer is not in equilibrium because he can raise his total utility by buying less of and more of. Similarly if the consumer is not in equilibrium as he can raise his total utility by buying less of and more of. falls as consumption increases : If does not fall as consumption increases the consumer will end up buying only good which is unrealistic or consumer will never reach the equilibrium position. Ans. 4 Related goods are either substitutes or complementary Substitutes Goods : When price of a substitude falls, it becomes cheaper than the given good. So the consumer substitutes it for given good will decrease. Similarly, a rise in the price of substitute will result in increase in the demand for given good. For example Tea and Coffee. Complementary Goods : When the price of a complementary good falls its demand rises and the demand for the given good will increase. Similarly when price of complementary good increases, then demand for given good decreases. For example : Car & etrol.

6 Ans. 5 Normal Goods : These are the goods the demand for which increases as income of the buyer rises. There is a positive relationship between income and demand or income effect is positive. Example ; Rice, Wheat Inferior Goods : These are the goods the demand for which decreases as income of buyer rises. Thus, there is negative relationship between income and demand or income effect is negative. Example : coarse grain, coarse cloth. Ans Nature of Commodity : Necessories like Salt, Kerosene oil etc. have inelastic demand and luxuries have elastic demand. 2. Availability of substitutes : Demand for goods which have close substitudes is relatively more elastic and goods without close substitutes have less elastic demand. 3. Different uses : Commodities that can be put to different uses have elastic demand for instance electricity has different uses. 4. Habit of the consumer : Goods to which consumers become habitual will have inelastic demand. Examples Liquor and Cigarette. Ans. 7 Quantity (Units) Total utility Marginal utility (1) As long as is positive, TU increases. (2) When marginal utility is equal to zero then total utility is maximum. (3) When marginal util[ity is negative; Total utility starts diminishing. Ans. 8 Marginal Utility : It is addition more to the total utility as consumption is increased by one more unit of the commodity. Law of Diminishing Merginal utility : It states that as consumer consumes more and more units of a commodity, the utility derived from each successive unit goes on decreasing. According to this law TU increases at decreasing rate and decreases.

7 Ans. 9 Three properties of indifference curves are as follow. 1. Slopes downward from left to right : To consume more of one good the consumer must give up some quantity of the other good so that total utility remains the same. 2. Convex towards the origin : MRS declines continuously due to the operation of the law of diminishing marginal utility. 3. Higher indifference curves represents higher utility : Higher indifference curve represent large bundle of goods. Which means more utility because of monotoric preference. Ans. 10 There are two conditions for consumer s equilibrium. (i) (ii) MRS = MRS is continuously falling. Explanation Suppose there are two goods and. the first condition of consumer s equilibrium is MRS = If MRS. It means consumer values more than what market values & willing to give more price than market price he will purchase more of this cause fall in MRS and it will continue upto that when MRS = If MRS. It means consumer values less than what market values. Consumer is willing to give less price as market price & he will purchase less of, by this MRS will increase and it will continue till MRS = (ii) Unless the MRS is continuously falling the equality between the MRS will not be achieved.

### CONSUMER'S BEHAVIOUR & THEORY OF DEMAND

UNIT 2 CONSUMER'S BEHAVIOUR & THEORY OF DEMAND POINTS TO REMEMBER Consumer : is an economic agent who consumes final goods and services. Total utility : It is the sum of satisfaction from consumption of

UNIT 2 CONSUMER'S BEHAVIOUR & THEORY OF DEMAND POINTS TO REMEMBER Consumer : is an economic agent who consumes final goods and services. Total utility : It is the sum of satisfaction from consumption of

### 1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price

1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. The two things needed for demand to exist are: willingness

### 1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price

1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. Quantity demanded vs demand: quantity demanded is

### First Term Weekly Test ECONOMICS. ECONOMICS STD 10 (ICSE) Ch. 3. ELASTICITY OF DEMAND

First Term Weekly Test ECONOMICS ECONOMICS STD 10 (ICSE) Ch. 3. ELASTICITY OF DEMAND 1. What is the meaning of Elasticity of Demand? Ans. The term elasticity indicates responsiveness of one variable to

### Unit 2: Theory of Consumer Behaviour

Name: Unit 2: Theory of Consumer Behaviour Date: / / Notations and Assumptions A consumer, in general, consumes many goods; but for simplicity, we shall consider the consumer s choice problem in a situation

### STANDARD XII (ISC) ECONOMICS Chapter 4: Elasticity of Demand

STANDARD XII (ISC) ECONOMICS Chapter 4: Elasticity of Demand Meaning of Elasticity of Demand The term elasticity indicates responsiveness of one variable to a change in another variable. For example, when

### ECONOMICS CHAPTER 4: ELASTICITY OF DEMAND Class: XII (ISC) Meaning of Elasticity of Demand

Meaning of Elasticity of Demand ECONOMICS CHAPTER 4: ELASTICITY OF DEMAND Class: XII (ISC) 2017-2018 The term elasticity of demand indicates responsiveness of quantity demanded due to change in any of

### 2007 Thomson South-Western

Elasticity... allows us to analyze supply and demand with greater precision. is a measure of how much buyers and sellers respond to changes in market conditions THE ELASTICITY OF DEMAND The price elasticity

### Theory of Demand and Supply 2

C H A P T E R Theory of Demand and Supply 2 Law of Demand and Elasticity of Demand Meaning of Demand u In ordinary speech, the term demand is many times confused with desire or want. u Desire is only a

### The price elasticity of demand when price decreases from \$9 to \$7 is A B C D -1.

Varsity Economics Product Market: Elasticity 1 The price elasticity of demand is a measure of the A effect of changes in demand on the price. B relationship between price and profitability. C responsiveness

### Chapter 1- Introduction

Chapter 1- Introduction A SIMPLE ECONOMY Central PROBLEMS OF AN ECONOMY: scarcity of resources problem of choice Every society has to decide on how to use its scarce resources. Production, exchange and

### CBSE SAMPLE PAPER-2(solved) ECONOMICS Class XII ANSWERS

CBSE SAMPLE PAPER-2(solved) ECONOMICS Class XII ANSWERS 1. Option C. Why to produce 2. Option A. substitute goods. 3. Option A. Inferior goods. 4. Option A. Parallel to X-axis. 5. Option C. General price

### UNIT 1 INTRODUCTION. Q. 1 PPC is concave because of: A. Law of diminishing returns. B. Law of DMU. C. Both D. None

UNIT 1 INTRODUCTION Q. 1 PPC is concave because of: A. Law of diminishing returns. B. Law of DMU C. Both D. None Q2. PPC is downward sloping because of: a) MRT is diminishing b) Constant MRT c) Increasing

### Chapter 21. Consumer Choice

Consumer Choice Utility is most closely defined as a) extra. b) marginal. c) usefulness. d) satisfaction. e) opportunity cost. Copyright Houghton Mifflin Company. All rights reserved. 21 2 Utility is most

### SENIOR SCHOOL CERTIFICATE EXAMINATION

SENI SCHOOL CERTIFICATE EXAMINATION MARCH-0 MARKING SCHEME ECONOMICS (OUTSIDE DELHI) SET- Expected Answers / Value Points GENERAL INSTRUCTIONS :. Please examine each part of a question carefully and allocate

### 1) Provide the formula for calculating the following, and answer all follow up questions. a. Define a supply elasticity.

PPA 723 Practice questions for Quiz one. 1) Provide the formula for calculating the following, and answer all follow up questions. a. Define a supply elasticity. i. Is it positive or negative? Why? b.

### Seyda Yildiz ID #: Assignment 2 (each question is worth of 3.5 points) (due on Tuesday, May 22)

CECN 104 Name: Seyda Yildiz ID #: Assignment 2 (each question is worth of 3.5 points) (due on Tuesday, May 22) 1. Which of the following statements is correct? A. Utility and usefulness are synonymous.

### Elasticity and Its Applications. Copyright 2004 South-Western

Elasticity and Its Applications 5 Copyright 2004 South-Western Copyright 2004 South-Western/Thomson Learning Elasticity... allows us to analyze supply and demand with greater precision. is a measure of

### full revision of micro economics

www.examhelplogger.com full revision of micro economics JOIN CLASS 12 TH FREE BATCH ON WHATS APP M 98 91 291 604 MICRO ECONOMICS Studies The Behaviour Of An Individual Economic Unit. Example : Demand Of

### INDIAN SCHOOL MUSCAT SENIOR SECTION Department of Commerce and Humanities

INIAN SCHOOL MUSCAT SENIOR SECTION epartment of Commerce and Humanities Class : XII Question Bank SERIES -1 MICRO ECONOMICS ate of issue --------------2017 ECONOMICS (030) Reference: NCERT Text Book ate

### Economic Analysis for Business Decisions Multiple Choice Questions Unit-2: Demand Analysis

Economic Analysis for Business Decisions Multiple Choice Questions Unit-2: Demand Analysis 1. The law of demand states that an increase in the price of a good: a. Increases the supply of that good. b.

### Introduction Question Bank

Introduction Question Bank 1. Science of wealth is the definition given by 2. Economics is the study of mankind of the ordinary business of life given by 3. Science which tells about what it is & what

### Midterm 2 - Solutions

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis November 13, 2009 Instructor: John Parman Midterm 2 - Solutions You have until 11:50am to complete this exam. Be certain to

### CH.1 INTRODUCTION TO ECONOMICS

HOLIDAY HOMEWORK SUMMER BREAK 2018-19 CLASS XII CBSE SUBJECT : ECONOMICS CH.1 INTRODUCTION TO ECONOMICS REMEMBERING Q1. Define Production Possibility Curve. 1 Q2. What do you mean by opportunity cost?

### UNIT 2 : THEORY OF CONSUMER BEHAVIOUR

THEORY OF DEMAND AND SUPPLY 2.57 UNIT 2 : THEORY OF CONSUMER BEHAVIOUR LEARNING OUTCOMES At the end of this Unit, you should be able to: Explain the meaning of utility. Describe how consumers try to maximize

### Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester Duration: 110 minutes ECON101 - Introduction to Economics I Final Exam Type A 11 January

### /

SAMPLE QUESTION PAPER 3 ECONOMICS Class XII Time allowed: 3hrs Maximum Marks: 100 General Instructions: a) All questions are compulsory. b) The question paper comprises of two sections, A and B. You are

### Unit 4: Consumer choice

Unit 4: Consumer choice In accordance with the APT programme the objective of the lecture is to help You to: gain an understanding of the basic postulates underlying consumer choice: utility, the law of

### DEMAND ANALYSIS. Samir K Mahajan, M.Sc, Ph.D.,UGC-NET Assistant Professor (Economics)

DEMAND ANALYSIS Samir K Mahajan, M.Sc, Ph.D.,UGC-NET Assistant Professor (Economics) DEMAND DETERMINANTS Demand determinants refer to the factors that affect demand for commodity (a consumer good), such

### Consumer s Equilibrium

ECONOMICS (CLASS 12) HOLIDAYS HOMEWK ASSIGNMENT Q1 ) The demand for the good at price of Rs 4 is 25. When the price of the good increases to Rs 5, the demand for the good falls to 20 units. Calculate price

### SOLUTION SUB: ECONOMICS DURATION 1 HR MARKS 25 SET A

SOLUTION SUB: ECONOMICS DURATION 1 HR MARKS 5 Ans.1. (i) Gossen (ii) Satiety (iii) GIffen (iv) Exceptional (v) Derived or Indirect SET A Ans..(i) Demand Desire Meaning: The demand refers to a desire backed

### SENIOR SCHOOL CERTIFICATE EXAMINATION

SENI SCHOOL CERTIFICATE EXAMINATION MARCH-0 GENERAL INSTRUCTIONS : MARKING SCHEME ECONOMICS (Foreign) (SET -) Expected Answers / Value Points. Please examine each part of a question carefully and allocate

### J. K. SHAH CLASSES. NAME : TOTAL MARK : 30 Total time: 1 HR.30 minutes BATCH :

J. K. SHAH CLASSES NAME : TOTAL MARK : 30 BRANCE : Total time: 1 HR.30 minutes BATCH : SOLUTION Ans.1. (A) Fill in the blanks using appropriate answer (04) 1. Decrease 2. Gossen s 3. Contracts 4. Negative

### Ecn Intermediate Microeconomic Theory University of California - Davis September 9, 2009 Instructor: John Parman. Final Exam

Ecn 100 - Intermediate Microeconomic Theory University of California - Davis September 9, 2009 Instructor: John Parman Final Exam You have until 1:50pm to complete this exam. Be certain to put your name,

### 07. Engel s Law of family expenditure and significance. - Consumer's surplus estimation and applications.

07. Engel s Law of family expenditure and significance. - Consumer's surplus estimation and applications. Engel s Law on Family Expenditure Every family has to spend money on necessaries of life, education,

### UNIVERSITY OF CALICUT

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION I Semester (2017 Admn.) Complementary Course for B.Com MANAGERIAL ECONOMICS Question Bank & Answer Key 1. Consumption of a free good will be carried to

### INSTITUTE OF RISING STARS

INSTITUTE OF RISING STARS 1/9,Lalita Park, Main Vikas Marg,Laxmi Nagar Chapter 2 Theory of Demand and Supply 1. Which of the following pairs of goods is an example of substitutes? (a) Tea and sugar (b)

### Macro Unit 1b. This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.

Macro Unit 1b Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. Notice that the remainder of this unit assumes

### Chapter 5. Market Equilibrium 5.1 EQUILIBRIUM, EXCESS DEMAND, EXCESS SUPPLY

Chapter 5 Price SS p f This chapter will be built on the foundation laid down in Chapters 2 and 4 where we studied the consumer and firm behaviour when they are price takers. In Chapter 2, we have seen

### Short-Run Versus Long-Run Elasticity (pp )

Short-Run Versus Long-Run Elasticity (pp. 38-46) Price elasticity varies with the amount of time consumers have to respond to a price Short-run demand and supply curves often look very different from their

### This is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.

Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. The remainder of this unit assumes a perfectly competitive

### Intermediate Microeconomics 301 Problem Set # 2 Due Wednesday June 29, 2005

Intermediate Microeconomics 301 Problem Set # 2 Due Wednesday June 29, 2005 1. A new chemical cleaning solution is introduced to the market. Initially, demand is Q D = 100 + 2p p 2 and supply is Q S =

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2015 First Hour Exam Version 1

1 Introduction to Agricultural Economics Agricultural Economics 105 Spring 2015 First Hour Exam Version 1 Name Section There is only ONE best, correct answer per question. Place your answer on the attached

### Econ: CH 7 Test Review Demand & Supply

Econ: CH 7 Test Review Demand & Supply The Big Idea: 1. Scarcity is the basic economic problem that requires people to make choices about how to use limited resources 2. Buyers and sellers voluntarily

### 1 of 14 5/1/2014 4:56 PM

1 of 14 5/1/2014 4:56 PM Any point on the budget constraint Gives the consumer the highest level of utility. Represent a combination of two goods that are affordable. Represents combinations of two goods

### Econ 303. Weeks 3-4 Consumer Theory

Econ 303 Weeks 3-4 Consumer Theory CHAPTER 3 OUTLINE 3.1 Consumer Preferences 3.2 Budget Constraints 3.3 Consumer Choice 3.4 Revealed Preference 3.5 Marginal Utility and Consumer Choice Consumer Behavior

### Sample Paper-05 ( ) Economics Class XII. Time allowed: 3 hours Maximum Marks: 100

Sample Paper-05 (2016-17) Economics Class XII Time allowed: 3 hours Maximum Marks: 100 Answers 1. (b) How to produce. 2. (c) tea and coffee 3. (c) Contraction of demand. 4. PPC shift when (i) resources

### 1. T F The resources that are available to meet society s needs are scarce.

1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility

### Economics. In an economy, the production units are called (a) Firm (b) Household (c) Government (d) External Sector

Economics The author of the book "The General Theory of Employment Interest and Money" is (a) Adam Smith (b) John Maynard Keynes (c) Alfred Marshall (d) Amartya Sen In an economy, the production units

### ECON 203 Homework #2 Solutions. 1) Can a set of indifference curves be upward sloping? If so, what would this tell you about the two goods?

1) Can a set of indifference curves be upward sloping? If so, what would this tell you about the two goods? A set of indifference curves can be upward sloping if we violate assumption number three; more

### UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION 1 ST SEMESTER B A ECONOMICS MULTIPLE CHOICE QUESTION CORE COURSE MICRO-ECONOMICS

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION 1 ST SEMESTER B A ECONOMICS MULTIPLE CHOICE QUESTION CORE COURSE MICRO-ECONOMICS Question Bank 1) Worth a rupee to a consumer is called: (a) Marginal

### FINAL. January 17, 2011 GROUP A

EC101 Sections 04 Fall 2010 NAME: ID #: SECTION: Instructions: FINAL January 17, 2011 GROUP A You have 90 minutes to complete the exam. There will be no extensions. Students are not allowed to go out of

### ECON 101 Introduction to Economics1

ECON 101 Introduction to Economics1 Session 6 The Concept of Elasticity I Lecturer: Mrs. Helen A. Seshie-Nasser, Department of Economics Contact Information: @ug.edu.gh College of Education School of Continuing

### SENIOR SCHOOL CERTIFICATE EXAMINATION

SENI SCHOOL CERTIFICATE EXAMINATION JULY-05 GENERAL INSTRUCTIONS : MARKING SCHEME ECONOMICS (DELHI) Expected Answers / Value Points (SET-III). Please examine each part of a question carefully and then

### What is Utility: Total utility & Marginal utility:

Economic Theory of Consumer Behavior * What is utility. * Define total utility and marginal utility.*** * State the law of diminishing marginal utility.**** * Define indifference curve and indifference

### EXAMINATION #2 VERSION A Consumers and Demand September 28, 2017

William M. Boal Signature: Printed name: EXAMINATION #2 VERSION A Consumers and Demand September 28, 2017 INSTRUCTIONS: This exam is closed-book, closed-notes. Calculators, mobile phones, and wireless

### PRINCIPLES OF ECONOMICS PAPER 3 RD

PRINCIPLES OF ECONOMICS PAPER 3 RD Question 1 Objectives. Select appropriate alternative. (A) The meaning of the world Economic is most closely associated with the word. (a) Free (b) Scarce (c) Unlimited

### University of Toronto June 14, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1

Department of Economics Prof. Gustavo Indart University of Toronto June 14, 2007 SOLUTION ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 A LAST NAME FIRST NAME STUDENT NUMBER SECTION ( Morning or

### Answers to RSPL/2. Section - A

Answers to RSL/2 1. (a) Section - A 2. Returns to a factor refers to a change in total output when only one input is changed, keeping other inputs unchanged. 3. (c) 4. Negative 5. While analysing the impact

### CHAPTER 4, SECTION 1

DAILY LECTURE CHAPTER 4, SECTION 1 Understanding Demand What Is Demand? Demand is the willingness and ability of buyers to purchase different quantities of a good, at different prices, during a specific

### SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME

All Rights Reserved No. of Pages - 07 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER I INTAKE VIII (GROUP B) END SEMESTER

### ECONOMICS CHAPTER 2: LAW OF DEMAND Class: XII (ISC)

q ECONOMICS CHAPTER 2: LAW OF DEMAND Class: XII (ISC) 2018-2019 Demand is the desire backed by the ability and willingness to buy that commodity. Ex. Household purchases 5 kgs of sugar per day @ Rs. 20

### a) I, II and III. b) I c) II and III only. d) I and III only. 2. Refer to the PPF diagram below. PPF

1. Suppose that - at a given level of an economic activity - marginal social cost is greater than marginal social benefit. Which of the following statements is TRUE? I. Social surplus would be higher at

### Economics. Class XII: Sample Paper. Source: mycbseguide.com

Economics Class XII: Sample Paper Source: mycbseguide.com Sample Paper-05 (2016-17) Economics Class XII Time allowed: 3 hours Maximum Marks: 100 General Instructions: (i) All questions in both sections

### Demand & Supply of Resources

Resource Markets 1 Demand & Supply of Resources Resource demand Firms demand resources As long as marginal revenue exceeds marginal cost To maximize profit Resource supply People supply resources To the

### Ecn Intermediate Microeconomics University of California - Davis April 21, 2010 Instructor: John Parman. Midterm 1

Ecn 100 - Intermediate Microeconomics University of California - Davis April 21, 2010 Instructor: John Parman Midterm 1 You have until 1:00pm to complete this exam. Be certain to put your name, id number

### BUSINESS ECONOMICS (PAPER IV-PART I)

BUSINESS ECONOMICS (PAPER IV-PART I) (60 MARKS) Q1: Macroeconomics is also called economics (a) applied (b) aggregate (c) experimental (d) none Q2: A Study of how increase in the corporate income tax rate

### Mr Sydney Armstrong ECN 1100 Introduction to Microeconomics Lecture Note (4) Price Elasticity of Demand

Mr Sydney Armstrong ECN 1100 Introduction to Microeconomics Lecture Note (4) Price Elasticity of Demand The law of demand tells us that consumers will buy more of a product when its price declines and

### Managerial Economics 2013 Block Course by MFZ,TUT CH 3& 4 in your text book. Please you need text book okay??

CH 3& 4 in your text book. Please you need text book okay?? ! " " " #! \$! % % & & & ' ( ) # % !* + % ( , % % !* + % ( ' -."/." 01. ! 2 3, ) 4 " 4 " 5 3, ) %, % ", % " " " " #!! % 3 ) ' " !* + % ( , % %

### FINAL EXAMINATION. Special Instructions: Date: DECEMBER 15, 2000 School Year: Course and No.: ECON1006EA Time: 1:30 PM- 3:30 PM

FINAL EXAMINATION Date: DECEMBER 15, 2000 School Year: 2000-2001 Course and No.: ECON1006EA Time: 1:30 PM- 3:30 PM Professor: SARLO, C Department: Arts & Science Number of Pages: 11 + cover Time Allowed:

### 4. A situation in which the number of competing firms is relatively small is known as A. Monopoly B. Oligopoly C. Monopsony D. Perfect competition

1. Demand is a function of A. Firm B. Cost C. Price D. Product 2. The kinked demand curve explains A. Demand flexibility B. Demand rigidity C. Price flexibility D. Price rigidity 3. Imperfect competition

### SENIOR SCHOOL CERTIFICATE EXAMINATION

SENI SCHOOL CERTIFICATE EXAMINATION MARCH-05 MARKING SCHEME ECONOMICS (DELHI) (SET -I) Expected Answers / Value Points GENERAL INSTRUCTIONS :. Please examine each part of a question carefully and then

### FINALTERM EXAMINATION FALL 2006

FINALTERM EXAMINATION FALL 2006 QUESTION NO: 1 (MARKS: 1) - PLEASE CHOOSE ONE Compared to the equilibrium price and quantity sold in a competitive market, a monopolist Will charge a price and sell a quantity.

### Demand: The desire, ability, and willingness to buy a product.

What is Demand? Demand: The desire, ability, and willingness to buy a product. Impact of Demand: Demand determines what the producers will produce and in what quantities. Remember Consumer Sovereignty??

### Q. 1 Explain the likely behaviour of total product under the stage of increasing return to a factor with the help of numerical example.

Q. 1 Explain the likely behaviour of total product under the stage of increasing return to a factor with the help of numerical example. Q. 2 With the help of example distinguish between total fixed cost

### MICRO-ECONOMIC THEORY I STUDY NOTES CHAPTER ONE

MICRO-ECONOMIC THEORY I STUDY NOTES CHAPTER ONE UNIT 1 BASIC CONCEPT OF CONSUMER BEHAVIOUR CHAPTER ONE CONTENTS Introduction Objectives Main Content Theory of Consumer Behaviour Consumer Preferences Decisiveness

### Graded exercise questions. Level (I, ii, iii)

Graded exercise questions Level (I, ii, iii) 248 MICRO ECONOMICS LEVEL 1 GRADED EXERCISE QUESTIONS (LEVEL I, II, III) INTRODUCTION 1. Why does an economic problem arise? 2. What is economics about? 3.

### Queen s University Department of Economics ECON 111*S

Queen s University Department of Economics ECON 111*S Take-Home Midterm Examination May 24, 25 Instructor: Sharif F. Khan Suggested Solutions PART A TRUE/FALSE/UNCERTAIN QUESTIONS Explain why each of the

### Theory of Consumer Behavior First, we need to define the agents' goals and limitations (if any) in their ability to achieve those goals.

Theory of Consumer Behavior First, we need to define the agents' goals and limitations (if any) in their ability to achieve those goals. We will deal with a particular set of assumptions, but we can modify

### Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1

1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2017 First Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.

### TheRevisionGuide (www.therevisionguide.com) is a free online resource for Economics and Business Studies.

TheRevisionGuide.com Accelerating your potential Economics Revision AS Economics Demand Notes by: Apsara Sumanasiri Student Name : Date:. TheRevisionGuide (www.therevisionguide.com) is a free online resource

### CHAPTER 2 THEORY OF DEMAND AND SUPPLY. Unit 3. Supply. The Institute of Chartered Accountants of India

CHAPTER 2 THEORY OF DEMAND AND SUPPLY Unit 3 Supply Learning Objectives At the end of this unit you will be able to : understand the meaning of supply. understand what determines supply. get an insight

12 ECONOMICS 3 MARKS MATERIAL LESSON 1 1. State Alfred Marshall s definition of Economics? Alfred Marshall defines; economics as a study of mankind in the ordinary business of Life 2. What is the main

### Assignment 2 Due on October 25 th (in class) * Please bring your answers in a big gray scantron answer sheet

ECON 202-510 Fall 2007 Raul Ibarra-Ramirez Assignment 2 Due on October 25 th (in class) * Please bring your answers in a big gray scantron answer sheet MULTIPLE CHOICE. Choose the one alternative that

### ECO 162: MICROECONOMICS INTRODUCTION TO ECONOMICS Quiz 1. ECO 162: MICROECONOMICS DEMAND Quiz 2

INTRODUCTION TO ECONOMICS Quiz 1 Answer the entire question You are required to give brief explanation for each of the questions. 1. Explain the basic economic concepts with the help of Production Possibility

### Assignment 2: Supply and Demand

Assignment 2: Supply and Demand (Reference: Mankiw and Taylor, Chapters 4, 5, 6) Multiple Choice 1. Suppose that a large dairy farmer is able to raise the market price of milk by restricting milk supply

### ECONOMICS SOLUTION BOOK 2ND PUC. Unit 5

Unit 5 I. Choose the correct answer (each question carries 1 mark) 1. In perfect competition, buyers and sellers are: a) Price makers b) Price takers c) Price analysts d) None of the above 2. A situation

### PART: A Introductory Micro Economics Capsules UNIT: I TOPIC: INTRODUCTION

CLASS- XII ECONOMICS PART: A Introductory Micro Economics Capsules UNIT: I TOPIC: INTRODUCTION A: Basic concepts 1. Definition of Economics 2. Central problems of an economy 3. Production possibility curve

### 1.2.3 Price, Income and Cross Elasticities of Demand

1.2.3 Price, Income and Cross Elasticities of Demand Price elasticity of demand The price elasticity of demand is the responsiveness of a change in demand to a change in price. The formula for this is:

### Economics MCQ (1-50) GAT Subject Management Sciences.

Economics MCQ (1-50) GAT Subject Management Sciences www.accountancyknowledge.com 51. If a 5% increase in price causes no change in total revenue, this means? (a) Demand is price inelastic (b) Demand is

### Lecture 6 Consumer Choice

Lecture 6 Consumer Choice Business 5017 Managerial Economics Kam Yu Fall 2013 Outline 1 Rational Choice Consumption Decisions Market Demand 2 Consumers Responsiveness Price Applications Income Substitutes

### PRICING IN COMPETITIVE MARKETS

PRICING IN COMPETITIVE MARKETS Some markets, such as those for agricultural commodities and gasoline, seem to have just one price at any given time. All producers in the market charge the same or very

### AGEC 105 Spring 2010 Test #1 Capps

Please put the following pieces of information on your scantron: (a) Name (b) UIN # (c) Section #: 501 502 503 (d) Sign the Aggie pledge on the back of your scantron. On my honor, as an Aggie, I have neither

### Chapter 10 Consumer Choice and Behavioral Economics

Microeconomics Modified by: Yun Wang Florida International University Spring 2018 1 Chapter 10 Consumer Choice and Behavioral Economics Chapter Outline 10.1 Utility and Consumer Decision Making 10.2 Where

### LEARNING UNIT 4 LEARNING UNIT 4

DATE: March 2014 MODULE: PMIC6111 TEXTBOOK REFERENCE: CHAPTER 7 pgs 109-132 THEME: DEMAND, SUPPLY AND PRICES OBJECTIVES: BY END OF YOU SHOULD KNOW THE FOLLOWING: CONSTRUCT AND INTERPRET GRAPHS EXPLAIN

### 6) Consumer surplus is the red area in the following graph. It is 0.5*5*5=12.5. The answer is C.

These are solutions to Fall 2013 s Econ 1101 Midterm 1. No guarantees are made that this guide is error free, so please consult your TA or instructor if anything looks wrong. 1) If the price of sweeteners,

### Supply and Demand Basics

Supply and Demand Basics I. Demand A. Demand is a schedule that shows the various amounts of a product consumers are willing and able to buy at each specific price in a series of possible prices during

### January Examinations 2015

January Examinations 2015 DO NOT OPEN THE QUESTION PAPER UNTIL INS TRUCTED TO DO SO BY THE CHIEF INVIGILATOR Department Module Code Module Title Exam Duration (in words) ECONOMICS EC2000 INTERMEDIATE MICROECONOMICS

### Microeconomics. Use the graph below to answer question number 3

More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *