MICROECONOMICS CH : 8 CONCEPTS OF COST — Economics STD 11 Commerce — Question

Show with the help of diagrams, the effect on equilibrium price and quantity when:
(i) demand is perfectly inelastic and supply decreases.
(ii) supply is perfectly inelastic and demand increases.

What is the relation between total utility and marginal utility?

Read the following table carefully and give your comments.

INDEX OF INDUSTRIAL PRODUCTION BASE 1993–94
Industry	Weight in %	1996–97	2003–2004
General index	100	130.8	189.0
Mining and quarrying	10.73	118.2	146.9
Manufacturing	79.58	133.6	196.6
Electricity	10.69	122.0	172.6

Distinguish between microeconomics and macroeconomics.

What is meant by increasing returns to a factor? What leads to increasing returns to a factor?

The result of X class students is given as follows:

Years	Ist Division	IInd Division	IIIrd Division
2015	10	30	50
2016	12	45	70
2017	14	50	60
2018	11	40	75

Draw a multiple bar diagram.

When the consumer is in equilibrium, MU of commodity-X is 45 and price of commodity-X is ₹9. Calculate the marginal utility of money. (Assuming marginal utility of money for the consumer is constant in equilibrium.)

On the basis of information given below, calculate average revenue and marginal revenue and explain their mutual relationship.

Units of a Good	1	2	3	4	5	6
Total Revenue (₹)	4	7	9	10	10	9

Explain simple average of relatives for the construction of index numbers. Explain its merits and demerits.

From the following table, find out the level of the output at which the producer will be in equilibrium. Give reasons for your answer.

Output (Units)	Marginal Revenue (Rs.)	Marginal Revenue (Rs.)
1	8	10
2	8	8
3	8	7
4	8	8
5	8	9