CONSUMER’S EQUILIBRIUM

DATE OF SUBMISSION:05/07/2017

One word Question

       1. The good which has inelastic demand is--------------

             (a) Salt (b) medicines (c) textbooks (d) all of these

       2.     Perfectly elastic demand is represented by a curve      which is -----------------

       3.   If the total expenditure on a good rises due to fall in its price, the Ed is------------

               (a) Greater than 1 (b) infinity (c) less than 1 (d) zero

       4.  The demand for a good at Rs. 10 per unit is 40units. Price falls by Rs.5, if price elasticity is 3.               Calculate demand after price fall.

       5.   Price of good rises from Rs.20 to Rs.22 and its demand falls from 100 to 80. Calculate Ep.

       6.  A consumer buys 20 units of a commodity at Rs.10 per unit. He buys 40 units, when price falls to Rs.8 per unit. Calculate Ep.

DATE OF SUBMISSION:30/06/2017

1.What are the merits and demerits and demerits of sample method 2. What do you mean by Census Method?3.What are the advantageous and disadvantageous of Census            method?               

DATE OF SUBMISSION:23/06/2017

One word Question

1. The ratio of exchange between 2 goods on an IC analysis is shown by the------------

2. IC can be straight line at------------

  (a)constant MRS (b) increasing MRS (c)decreasing MRS (d)none of theses

3. Higher IC indicates-----------

4. A consumer wants to consume 2 goods. The prices of the two goods are Rs.4 and Rs.5 respectively.  Prepare Budget equation, Budget line and calculate slope of the Budget line.

3. Explain three properties of the IC with the help of diagrams.

4. Explain consumer equilibrium with the help of IC analysis. 

DATE:09.06.2017

1.	Explain the condition of consumer’s equilibrium in case of a single commodity.
2.	Ms Pratima was hungry, hence she decided to eat bananas, however, after eating 2 bananas, she suddenly realised that, now she is not enjoying eating any further unit. Hence, she decided to eat rest of the bananas later on. Identify the reason behind the above case. Also state the underlying assumptions.
	ONE WORD QUESTION
1.	A consumer buys two commodities X and Y, he would be in Equilibrium When------------- (a) MUx/Px=MUy/Py  (b) MUx/MUy=MUm  (c) Px/Py=MUm
2.	In case of single commodity, the consumer will be in equilibrium when------------------- (a) MUx/Px=MUm(b) MUx/MUy=MUm  (c) Px/Py=MUm

UTILITY

Q1) What is the difference between cardinal utility and ordinal utility?

Q2) The total utility schedule of individual ‘A’ is given below. Derive his Marginal Utility schedule

Units	0	1	2	3	4	5
Total Utility	0	16	29	41	52	62

Q3) Calculate TU from the following MU schedule.

Units	0	1	2	3	4	5	6	7
MU	-	10	8	6	4	2	0	2

Q4) Explain the relationship between Total Utility and Marginal Utility with the help of a diagram.

ONE WORD QUESTIONS

Q1) Total Utility derived from consumption of commodity will begin to fall __
        a) With every additional unit consumed b) When MU becomes negative c) When MU starts falling                                 

Q2) Law of diminishing MU assumes the MU of money to be----------

a)       Increasing        b) Decreasing c)Constant      d) None of these

Q3)  ___ curve is downward sloping curve cutting the x axis.
      a) Marginal Utility   b) Average Utility      c) Total Utility         d) Both a and c                                    
Q4) Utility approach is ____

       a) Cardinal    b) Ordinal c)   Both Cardinal and Ordinal     d) None of these          

Q5) Utility analysis is known as _____
     a) Cardinal approach      b) Ordinal approach c) Hicksian approach      d) None of these