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

Complete the following table.

Output (Units)	1	2	3	4
AR(₹)	-	9	-	-
MR (₹)	-	-	24	-
TR (₹)	10	-	-	4

Give reasons for the following statements:

1. Variable factor proportions obtain in the short run.
2. Fixed factor proportions obtain in the long run.

What is perfectly elastic supply? When price falls by ₹ 2 per unit, supply falls from 100 units to 80 units. Price elasticity of supply is 2. What was the price per unit before change? Calculate.

Will the following be a part of domestic income of India? Give reasons for your answer.

1. Old age pension given by the government.
2. Factor income from abroad.
3. Salaries to Indian residents working in Russian Embassy in India.
4. Profits earned by a company in India, which is owned by a non-resident.

Economists say in consistent things, as price falls, demand rises, but as demand rises, price rises. Defend or refute.

Differentiate between decrease in supply and contraction in supply (decrease in quantity supplied).

Explain the effect of the following on demand for a good:

1. Rise in Income for Normal Goods.
2. Rise in Income for Inferior Goods.

Explain how market price of a good is determined using diagram.###How is price determined under perfect competition? Explain briefly.###How is equilibrium price of a commodity determined? Explain with the help of demand and supply schedule.

Define 'Market-supply'. What is the effect on the supply of a good when Government imposes a tax on the production of that good? Explain.

The demand function of a commodity x is Q_x = 12 - P. (where Q_x = the quantity demanded of a commodity x and P_x = price of the commodity x). Derive the TR and MR schedules when the price of commodity varies from ₹ 12 to ₹ 1.