MICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND — Economics STD 11 Commerce — Question

The following table gives the average product schedule of labour. Find the total product and marginal product schedules. It is given that the total product is zero at zero level of labour employment.

L	1	2	3	4	5	6
AP<sub>L</sub>	2	3	4	4.25	4	3.5

Do samples provide better results than surveys? Give reasons for your answer.

When mode is indeterminable?

Index numbers are 'economic barometers'. Explain this statement.

The market price of a good changes from ₹ 5 to ₹ 20. As a result, the quantity supplied by the firm increases by 15 units. The price elasticity of supply is 0.5. Find the initial and final output levels of the firm.

Find the mean deviation taking deviation from the mean for the given individual observation
10, 20, 30, 40, 50, 60, 70

A consumer spends ₹100 on a good priced at ₹4 per unit. When its price falls by 25 per cent, the consumer spends ₹75 on the good. Calculate the price elasticity of demand by the percentage method.

A consumer consumes only two goods X and Y whose prices are ₹ 2 and ₹1 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X being 4 and that of Y also being 4, is the consumer in equilibrium? Give reasons. Explain what will a rational consumer do in this situation.