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Holiday Assignment , Calss XII, Sub: Economics. To submit on 20-06- 2016.
1. Define micro economics.
2. What is meant by the problem of ‘what to produce’ ?
3. Explain the various points of relationship between MU and TU with the help of a schedule and a
diagram.
4. How does a consumer reach equilibrium position when he is buying only one commodity, with the
help of a utility schedule.
5. A consumer consumes two goods X and Y. State and explain the conditions of consumers equilibrium
with the help of utility analysis.
6. Explain –
a. Why is an indifference curve convex to the origin?
b. Why does a higher indifference curve represent a higher level of satisaction?
7. What are monotonic preferences of consumers? Explain why an indifference curve is downward
sloping from left to right?
8.Suppose a consumer can buy 5 units of good X and 4 units of good Y if he spends his entire income.
The price of good X is Rs.10 and that of good Y is Rs.12 per unit. Calculate the income of the consumer.
9.A consumer is indifferent to the bundles (4,7) and (4,8).Indicate whether he has monotonic
preference.
11. Distinguish between change in demand and change in quantity demanded of a commodity.
12. A consumer purchased 10 units of a commodity when its price was Rs.5 per unit. He purchased 12
units of the commodity when its price was Rs.4 per unit. What is the price elasticity of demand for the
commodity?
13. Elasticity of demand for a commodity is -1. A consumer buys 50 units of that good when price is Rs. 2
per unit. How many units will the consumer buy if the price rises to Rs. 4 per unit. Answer this question
with the help of Total expendituremethod of determining price elasticity of demand.