Market Equilibrium — Economics STD 12 Humanities & Commerce — Question

Explain briefly how changes in open market operations be helpful in correcting deficient demand.

Explain the change in demand of a good on account of change in prices of related goods.

OR

How is demand for a commodity affected by the rise in price of related goods? Explain with the help of diagram.

OR

Explain how the demand for a good is affected by the price of its related goods. Give examples.

How is exchange rate determined in the foreign exchange market? Explain.

Why a higher Indifference Curve in an indifference map Prepresents a higher level of satisfaction?

A consumer buys 30 units of a good at a price of Rs. 10 per unit. Price elasticity of demand for the good is (-)1. How many units the consumer will buy at a price of Rs. 9 per unit? Calculate.

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

Good X(units)	Good Y(units)
0	8
1	6
2	4
3	2
4	0

Why are the firms said to be interdependent in an oligopoly market? Explain.

Giving reasons identify the equilibrium level of output and find profit at this output using 'Marginal Cost and Marginal Revenue' approach from the following:

Output (Units)	1	2	3	4	5
Total Cost (Rs.)	7	13	20	28	37
Total Revenue (Rs.)	7	14	21	28	35

What are capital goods? How are they different from consumption goods?