Production and cost — Economics STD 12 Humanities & Commerce — Question

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

Given the price of a good, how does a consumer decide as to how much of that good to buy.

Or

Explain the condition of determining how many units of a good consumer will buy at a given price.

OR

Explain why the price a consumer is willing to pay for a good equals the marginal utility of X when in equilibrium.

OR

Explain why consumer's equilibrium is attained when the utility of a product in terms of money is equal to its price.

Explain the relation between marginal revenue and average revenue when a firm is able to sell more quantity of output:

1. At the same price.
2. Only by lowering the price.

Explain the ‘bank of issue’ function of central bank.

Explain any three determinants of demand for commodity.

Why a firm's demand curve indeterminates under oligopoly?

Starting from an initial situation of consumer's equilibrium state, how does increase in marginal utility of one rupee affect the quantity demanded of a product?

Explain why G – T = (Sg – I) – (X – M).

In an economy, C = ₹ 300 + 0.5Y and I = 3600 (where, C = Consumption, Y = Income, 1 = Investment). Calculate the following:

1. Equilibrium level of income.
2. Consumption expenditure at equilibrium income.

The demand for a good rises by 20 per cent as a result of fall in its price. Its price elasticity of demand is (-)0.8. Calculate the percentage fall in price.