MICROECONOMICS CH : 5 THEORY OF DEMAND — Economics STD 11 Commerce — Question

Distinguish between positive and normative economics.

A consumer consumes only two goods A and B and is in equilibrium. Show that when price of good B falls, demand for B rises. Answer this question with the help of utility analysis.

A department store sells stereo systems, television sets and radios. The percentage distribution of the total sales volume (in ₹) is estimated as 30% stereos, 50% televisions and 20% radios. The price of one stereo, one television and one radio in 2009 was ₹ 20,000, ₹ 15,000 and ₹ 500 respectively, while their respective price in 2012 were ₹ 25,000, ₹ 20,000 and ₹ 800.
A weighted price index for 2012 with base 2009 is to be computed.

1. Which index number formula is appropriate? Why?
2. Compute the index.

Calculate coefficient of correlation of the following data by the Product Moment Method:

X	8	6	4	3	4
Y	9	7	4	4	6

Find producer's equilibrium, from the following. Give logical reason.

Quantity Sold (Units)	Total Revenue (₹)	Total Cost (TC) (₹)
5	15	18
6	20	22
7	25	26
8	30	27
9	35	32
10	40	38

State the steps taken in collection of data.

Compare mean, median and mode as measures of central tendency.

Explain the difference between ‘change in demand’ and ‘change in quantity demanded’

What are the advantages and disadvantages of tabular presentation of data?

Two ladies were asked to rank 7 different types of lipstics. The ranks given by them are as follows:

Lipsitics	A	B	C	D	E	F	G
Neelu	2	1	7	3	5	7	6
Neena	1	3	2	4	5	6	7

Calculate Spearman's rank correlation coefficient.