Money and Banking — Economics STD 12 Humanities & Commerce — Question

A consumer buys 40 units of a good at a price of Rs. 3 per unit. When price rises to Rs. 4 per unit he buys 30 units. Calculate price elasticity of demand by the total expenditure method.

How does the budget line change if the consumer's income increases to Rs 40 but the prices remain unchanged?

A consumer consumes only two goods. Explain consumer's equilibrium with the help of utility analysis.

"India is taking huge leaps in the index of Ease of Doing Business, as a result many MNCs are shifting their production base to India." In the light of the above statement, comment upon the flow of foreign exchange and its likely impact on the Indian Economy.

Explain law of demand with the help of a demand schedule.

Find maximum profit situation from the table:

Output (in units)	TR (₹)	TC (₹)
1	50	60
2	60	65
3	68	68
4	70	60
5	75	75
6	80	95

Calculate:

1. Output level showing loss.
2. Output level showing break-even point.
3. Output level showing maximum profit.

A consumer consumes only two goods X and Y. At a consumption level of these two goods, he finds that the ratio of marginal utility to price in case of X is higher than in case of Y. Explain the reaction of the consumer.

Distinguish between ‘revenue receipt’ and ‘capital receipt’ and give two examples of each.

As a result of increase in price from 4 to 5, the quantity demanded decreases by 20%. Comment on PED.