(English Medium) ICSE Class 10 - CISCE Question Bank Solutions for Economic Applications

What are secondary (derivative) deposits?

What is money multiplier?

How money multiplier is related to Legal Reserve Ratio?

Why are the banks required to keep only a fraction of deposits as cash reserves?

Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.

The government wants to reduce the consumption of good by 10%. The price elasticity of demand for elasticity is -0.4. The government should raise the price of elasticity by ______.

What is the implication of a vertical demand curve?

The price of Y falls from ₹ 8 to ₹ 6. The quantity demanded increases from 100 units to 125 units. The price electricity of demand will be ______.

When the price elasticity of demand for a good equals ______.

Which of the following is the most likely reason for the relatively high elasticity of bottled water?

Assertion (A): The demand for soap, salt, matches etc. is highly elastic.

Reason (R): The demand for soap, salt, matches etc. is highly inelastic because the consumer spends a very small amount of expenditure in relation to his/her income.

Assertion (A): Demand for a commodity with large number of substitutes with be less elastic.

Reason (R): With large number of substitutes, even a small rise in its price will induce the buyers to go for its substitutes.

The nature of a commodity determines its price elasticity of demand. Explain.

How does the availability of substitutes of a commodity affect its price elasticity of demand?

Explain briefly the factors on which elasticity of demand depends.

When will the demand curve be parallel to x-axis?

Comment upon the shape of the demand curve, if E_d = 0.

State 3 factors which affect price elasticity of demand.

Discuss any three/ four factors determining price elasticity of demand.

Following is the feature of perfect competition: