Question
What is a false base line? What is its purpose? Give an example.
✓
Answer
Usually, when we draw any graph, the scale on which the graph is measured starts from zero on the y-axis. However, under the situations when the data to be plotted on graph starts from a value which is far above zero, results in the problem of shortage of space on graph. To overcome this problem of shortage of space, a false baseline is plotted. False base line is a line which is drawn to grasp the attention of the reader on the fluctuations which usually remains unnoticed. Graphical Presentation
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
Discuss the relationship between total revenue, average revenue and marginal revenue under perfect competition and monopolistic competition. Use diagrams.
How is the optimal amount of labour determined in a perfectly competitive market?
Total revenue is ₹ 400 when the price of the commodity is ₹ 2 per unit. When price rises to ₹ 3 per unit, the quantity supplied is ₹ 300 units. Calculate the price elasticity of supply.
Explain how the demand for a good is affected by the prices of its related goods. Give examples.
A consumer spends Rs. 1,000 on a good priced at Rs. 10 per unit. When its price falls by 20 percent, the consumer spends Rs. 800 on the good. Calculate the price elasticity of demand by the Percentage method.
Explain with the help of diagrams, the effect of the following changes on the demand of a commodity:
- A fall in price of Substitute good.
- A fall in price of Complementary good.
What will be the effect of the following changes in total revenue on marginal revenue?
- Total revenue increases at a decreasing rate.
- Total revenue increases at a constant rate.
What does the Law of Variable Proportions show? State the behaviour of total product according to this law.
A firm fixed average cost of producing 2 units of a good is Rs.9 and its total cost schedule is given below. Calculate average variable cost and marginal cost for each of given level of output.
|
Output (Units)
|
1
|
2
|
3
|
|
Total Cost (₹)
|
23
|
27
|
30
|
Explain any two causes of a rightward shift of supply curve.
OR
Explain any two causes of 'increase in supply of a commodity.
OR
Explain any two causes of 'increase in supply of a commodity.