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

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.

Considering the same demand curve as in exercise 22, now let us allow for free entry and exit of the firms producing commodity X. Also assume the market consists of identical firms producing commodity X. Let the supply curve of a single firm be explained as

q^S_f = 8 + 3p for p ≥ 20

= 0 for 0 ≤ p < 20

(a) What is the significance of p = 20?

(b) At what price will the market for X be in equilibrium? State the reason for your answer.

(c) Calculate the equilibrium quantity and number of firms.

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

What was the focus of the economic policies pursued by the colonial government in India? What were the impacts of these policies?

Name some notable economists who estimated India’s per capita income during the colonial period.

What objectives did the British intend to achieve through their policies of infrastructure development in India?

Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.

What do you understand by the drain of Indian wealth during the colonial period?

Underscore some of the India’s most crucial economic challenges at the time of independence.