Theory of consumer behaviour — Economics STD 11 Commerce — Question

The sales of a balloon seller in seven days of a week are as given below.

Days	Mon	Tue	Wed	Thu	Fri	Sat	Sun
Sales (in Rs.)	100	150	125	140	160	200	250

If the profit is 20% of sales, then find his average profit per day.

Complete the following table:

Units of Labour	Average product	Marginal Product
	(Units)	(Units)
1	8	…….
2	10	…….
3	……	10
4	9	…….
5	……	4
6	7	…….

Giving reason comment on the shape of Production Possibilities curve based on the following schedule:

Good X(units)	Good Y(units)
0	20
1	18
2	14
3	8
4	0

How is a production possibilities curve affected by unemployment in the economy? Explain.
OR
Explain how a PPC is affected when resources are inefficiently employed in an economy.

Gulf countries have acquired more capital goods by selling oil to various countries. What would be its impact on Production Possibility Curve?

Why is a production possibility curve concave to the origin? Explain.
OR
Why is a typical production possibility curve concave? Explain.

Draw a demand curve with unitary price elasticity. Give explanation.

Explain the relationship between Price Elasticity of Demand and Marginal Revenue with the help of a diagram.

At which point does the SMC curve cut the SAC curve? Give reason in support of your answer.

Explain the effect of rise in the prices of related goods on the demand for a good
OR
How is the demand for a good affected by a rise in price of other goods? Explain.