Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

Explain the geometric method of measuring price elasticity of supply. Use diagram.

From the following data on the cost of production of a firm, calculate:

1. average fixed cost and.
2. average variable cost of producing 8 units:

Output	0	3	8
TC (₹)	80	104	152

A firm supplies 10 units of a good at a price of 5 per unit. Price Elasticity of Supply is 1.25. What quantity will the firm supply at a price of 7 per unit.

Suppose the market determined rent for apartments is too high for common people to afford. If the government comes forward to help those seeking apartments on rent by imposing control on rent, what impact will it have on the market for apartments?

If the Real Gross Domestic Product is ₹ 200 and the Nominal Gross Domestic Product is ₹ 210, calculate the Price Index (base = 100).

The following table shows the average variable cost at different levels of output by a firm. Its total fixed cost is ₹ 60. Find its average total cost and marginal cost at each level of output.

Output (Units)	1	2	3
Average Variable Cost(₹)	20	25	24

Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium:

National income	=	2,000
Autonomous consumption expenditure	=	200
Investment expenditure	=	100

What are implications of fiscal deficit?

Define demand. State the factors affecting market demand.

What happens when the government fixes the maximum price (or price ceiling) lower than the market equilibrium price for the commodity? Explain with the help of a diagram.###Explain the effects of a 'Price Ceiling'.