MICROECONOMICS CH : 13 MARKET EQUILIBRIUM UNDER PERFECT COMPETITION AND EFFECTS OF SHIFTS IN DEMAND AND SUPPLY — Economics STD 11 Commerce — Question

When do we say there is excess demand for a commodity in the market?

What is the law of diminishing marginal product?

The following headline appeared in the Economic Times:
"Room Supply may Hit Hotel Revenues."
Explain the economic theory to analyse the impact of the statement.

At which point does the SMC curve cut the SAC curve? Give reason in support of your answer.

Marginal cost includes both fixed cost and variable cost. Comment.

Analyse the impact of (i) increase in consumer's income and (ii) increase in number of consumers on market equilibrium. Use a suitable diagram in support of your answer.

What is firm's price line? What is its shape?

Define increase in demand. What causes increase in demand?

"Massive unemployment shifts the PPC to the left." Defend or refute the statement.

Firm's supply curve shows its supply function.' Defend or refute the given statement.