Commerce (English Medium) Class 12 - CBSE Question Bank Solutions

Explain the concept of ‘fiscal deficit’ in a government budget. What does it indicate?

Draw average revenue and marginal revenue curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain. 

Market for a good is in equilibrium. There is an ‘increase’ in demand for this good. Explain the chain of effects of this change. Use diagram. 

Explain the ‘redistribution of income’ objective of Government budget.

Discuss the central problems of an economy.

Explain why public goods must be provided by the government.

What would be the shape of the demand curve so that the total revenue curve is

(a) a positively sloped straight line passing through the origin?

(b) a horizontal line?

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

What is the value of the MR when the demand curve is elastic?

Comment on the shape of MR curve in case when TR curve is a positively sloped straight line.

List the three different ways in which oligopoly firms may behave.

If duopoly behaviour is one that is described by Cournot, the market demand curve is given by the equation q = 200 − 4p and both the firms have zero costs, find the quantity supplied by each firm in equilibrium and the equilibrium market price.

What is meant by prices being rigid? How can oligopoly behaviour lead to such an outcome?

Explain market equilibrium.

What will happen if the price prevailing in the market is

(i) above the equilibrium price?

(ii) below the equilibrium price?

How are equilibrium price and quantity affected when income of the consumers increase.

Using supply and demand curves, show how an increase in the price of shoes affects the price of a pair of socks and the number of pairs of socks bought and sold.

How will a change in price of coffee affect the equilibrium price of tea? Explain the effect on equilibrium quantity also through a diagram.

How do the equilibrium price and the quantity of a commodity change when price of input used in its production changes?

Compare the effect of shift in the demand curve on the equilibrium when the number of firms in the market is fixed with the situation when entry-exit is permitted.