Non-Competitive Markets — Economics STD 12 Humanities & Commerce — Question

For a consumer to be in equilibrium why must marginal rate of substitution be equal to the ratio of prices of the two goods?

OR 

Using indifference curve approach, explain the conditions of consumer's equilibrium.

OR

Why is the consumer in equilibrium when he buys only that combination of the two goods that is shown at the point of tangency of the budget line with an indifference curve? Explain.

OR

What are the conditions of consumer's equilibrium under the indifference curve approach? What changes will take place if the conditions are not fulfilled to reach equilibrium?

OR

State and explain the conditions of consumer's equilibrium in indifference curve analysis.

OR

Explain consumer equilibrium using the concept of budget line and indifference map or Interior Optimum Consumer Equilibrium.

OR

A consumer consumes only two of goods. For the consumer to be in equilibrium why must Marginal Rate of Substitution between the two goods must be equal to the ratio of prices of these two goods? Is it enough to ensure equilibrium?

OR

A consumer consumes only two goods. Explain the conditions that need to be satisfied for the consumer to be in equilibrium under indifference curve analysis.

OR

Show diagrammatically the conditions for consumer's equilibrium, in Hicksian analysis of demand.

OR

Explain the conditions of consumer's equilibrium under indifference curve approach.

What is a production possibility frontier?

How will a fall in price of tea affect the equilibrium price of coffee? Explain the chain of effects.

Explain consumer’s equilibrium with the help of Indifference Curve Analysis.

Calculate:

1. GDP_MP by Income method; and.
2. Closing stock.

S. No	Particulars	(₹) In Crose
1.	Private final consumption expenditure.	450
2.	Rent.	120
3.	Government final consumption expenditure.	50
4.	Indirect taxes.	60
5.	Interest.	150
6.	Mixed income of self employed.	20
7.	Consumption of fixed capital.	30
8.	Opening stock.	10
9.	Gross fixed capital formation.	300
10.	Compensation of employees.	200
11.	Net exports.	(-)10
12.	Net factor income from abroad.	(-)10
13.	Subsidies.	10
14.	Profit.	250

Complete the following table.

Price (₹)	1	2	3	4	5	6	7
Units Sold	100	90	80	70	60	50	40

Distinguish between inflationary gap and deflationary gap. State one measure for each, by which these can be corrected.

A consumer consumes only two goods.

Explain the conditions of the consumer's equilibrium with the help of Utility Analysis.

OR

State and explain the condition of consumer's equilibrium in case of two commodities through utility approach.