MICROECONOMICS CH : 1 ECONOMICS AND ECONOMY — Economics STD 11 Commerce — Question

Giving reasons, state if the following statements are true or false.
An increase in the income of a consumer would result in an increase in demand for all types of goods that are demanded by a consumer.

Giving reasons, state whether the following statements are true or false.
Price elasticity of demand explains qualitative relationship between price and demand.

Fall in marginal product must lead to a fall in average product as well.

Explain the inverse relationship between the price of a commodity and its demand.OR
Why does law of demand slope downward from left to right?
OR
Why do household buy more at a lower price than at a higher price?OR
Explain the causes behind law of demand.

State giving reasons, whether the following statements are true or false:
When there are diminishing returns to a factor, Total Product first increases and then starts falling?

Total fixed cost is indicated by a vertical straight line.

In the short period, production is done only by using the variable factors.

It is quantity demanded (and not demand for a commodity) that changes with respect to its own price.

Decrease in demand refers to contraction of demand.

Forward shift in demand curve occurs when own price of the commodity rises, and consumer's income remains constant.