Class 12 Micro Economics - Chapter Market Equilibrium NCERT Solutions | Suppose the demand and supply curve of c

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

Suppose the price at which the equilibrium is attained in exercise 5 is above the minimum average cost of the firms constituting the market. Now if we allow for free entry and exit of firms, how will the market price adjust to it?

When do we say that there is an excess demand for a commodity in the market?

Suppose the market determined rent for apartments is too high for common people to afford. If the government comes forward to help those seeking apartments on rent by imposing control on rent, what impact will it have on the market for apartments?

When do we say that there is an excess supply for a commodity in the market?

In what respect do the supply and demand curves in the labor market differ from those in the goods market?

Explain market equilibrium.

If the price of a substitute Y of good X increases, what impact does it have on the equilibrium price and quantity of good X?

Explain how price is determined in a perfectly competitive market with a fixed number of firms.

How is the optimal amount of labor determined in a perfectly competitive market?

Explain the concept of a production function

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?

Discuss the central problems of an economy.

What are the characteristics of a perfectly competitive market?

What do you mean by the budget set of a consumer?

What is the total product of input?

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

What do you mean by the production possibilities of an economy?

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

What is budget line?

What are the average fixed cost, average variable cost and average cost of a firm? How are they related? 

Consider the demand curve D (p) = 10 – 3p. What is the elasticity at price 53?

The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of this firm? Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm.

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

Compute the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.

Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9) and (9, 9)?

What are the total fixed cost, total variable cost and total cost of a firm? How are they related?

What is the relation between market price and marginal revenue of a price-taking firm?

There are three identical firms in a market. The following table shows the supply schedule of firm 1. Compute the market supply schedule.

How does the budget line change if the consumer’s income increases to Rs 40 but the prices remain unchanged?