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Economics 6 Marks Question

Model Paper 5 · Rajasthan Board (RBSE) STD 11 Humanities & Commerce (Rajasthan - English Medium). 2 questions.

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6 Marks Question

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2 questions · self-marked practice — reveal the answer and mark yourself.

Question 16 Marks
Answer the following questions
(i) The measure of price elasticity of demand of a normal goods carries minus sign while price elasticity of supply carries plus sign. Explain why?
(ii) A commodity showing high elasticity of demand often has a large number of close substitutes in the market. Do you agree?
Answer
(i) It is true that measure of price elasticity of demand for a normal goods carriers minus sign because there is an inverse relationship between Price and Quantity. Whereas, there is a positive relationship between price and quantity supplied. Therefore, price elasticity of supply carries plus sign .
(ii) Yes, we agree with the given statement. The elasticity of demand is high in the case of goods with close substitutes (for example, tea has its substitute in coffee). The availability of close substitutes makes it possible for the consumer to switch from one commodity (like tea) to the other (like coffee) in response to a change in the relative price structure. Accordingly, the elasticity of demand is high .
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Question 26 Marks
Complete the following data.
Units of LabourAverage Product (A) (units)Marginal Product (Units)
18-
210-
3-10
49-
5-4
67-
Answer
Labour (Q) (units)Total product (TP) (units)Average product (AP) (Units)Marginal product (MP) (units)
1888
2201012
3301010
43696
54084
64272
For completing this table, we include one more column, Total Product (TP).
For the $1^{\text {st }}$ unit of labour, AP is given as 8 , so, $TP = AP \times$ no. of units $=8 \times 1=8$. For the $1^{\text {st }}$ unit of labour, MP will also be 8 .
For the $2^{\text {nd }}$ unit of labour, AP is given as 10 , so $TP = AP \times$ no. of units $=10 \times 2=20$. $MP = TR$ of $2^{\text {nd }}$ unit - TR of $1^{\text {st }}$ unit $=20-8=12$.
For the $3^{\text {rd }}$ unit of labour, MP is given as 10 , so $TP = TP$ of $2^{\text {nd }}$ unit $+10=20+10=30$. AP $= TP / No$. of units $=30 / 3=10$.
For the $4^{\text {th }}$ unit of labour, AP is given as 9 , so TP $= AP \times$ No. of units $=9 \times 4=36 . MP =$ TP of $4^{\text {th }}$ unit - TP of 3 rd unit $=36-30=6$.
For the $5^{\text {th }}$ unit of labour, MP is given as 4 , so TP will be TP of $4^{\text {th }}$ unit $+4=36+4=40$. $AP = TP / No$. of units $=40 / 5=8$.
For the $6^{\text {th }}$ unit of labour, AP is given as 7 , so TP $= AP \times$ No. of units $=7 \times 6=42 . MP =$ TP of $6^{\text {th }}$ unit - TP of $5^{\text {th }}$ unit $=42-40=2$.
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