MICROECONOMICS CH : 9 CONCEPT OF REVENUE — Economics STD 11 Commerce — Question

All attainable combinations of Good-X and Good-Y are below the budget line of a consumer.

Giving reasons, state whether the following statements are true or false:
Equilibrium between demand and supply helps in determining prevailing price of the product.

Floor price is fixed by the government, which is generally lower than the equilibrium price. (True/ False)

Lack of scarcity implies lack of economic problem.

Demand for a commodity refers to the entire demand schedule.

Giving reasons, state whether the following statements are true or false.
If marginal product falls, average product must also fall.

Quantity demanded is a specific amount of a commodity that the consumer is ready to buy against a specific price, while demand is not.

Firm's demand curve shows highest elasticity in a state of perfect competition.

An individual can shift from the consumption of a normal good to the consumption of an inferior good.