the consumers more will be market demand and Consumer’s group:More Explain the various degrees of price elasticity ofdemand with the help of diagrams. Ans:- are five degrees of price elasticity of demand. They are, slight or no change in the leads to infinite Perfectly elastic demand(Ed=∞):-a changes in the quantity demanded. of a commodity does not change at all Perfectly Inelastic demand(Ed=0):-Demand irrespective of any change in its price. the percentage change in demand(%) of a Unitary elastic demand(Ed=1):-When commodity is equal to the percentage change in price. percentage change in demand Greater than unitary elastic demand(Ed>1):-When of a commodity is more than the percentage change in its price. percentage change in demand of a Less than unitary elastic demand(Ed<1):-When commodity is less than the percentage change in its price. FREQUENTLY ASKED QUESTIONS– CBSE BOARD EXAMINATIONS Define Microeconomics. Why an economic problem does arise? What are the central problems of an economy? Define opportunity cost. Define marginal opportunity cost. Distinguish macro’economics. Why PPC is Concave from the origin. Define Marginal Rate of Transformation (MRT) Explain the problem, of to produce’and to produce.’ ‘what ‘how Explain the central problem of how to produce with the help of an example. What is an indifference curve? Define Utility. What is budget set? Define budget line. Define MRS. A consumer consumes only two goods.Explain the conditions of consumer’s equilibrium with the help of Ica nalysis. For a consumer to be in equilibrium,why must MRS be equal to the ratio of price of two goods?
Consumer’s group:More the consumers more will be market demand and Explain the various degrees of price elasticity ofdemand with the help of diagrams. Ans:- are five degrees of price elasticity of demand. They are, Perfectly elastic demand(Ed=∞):-a slight or no change in the leads to infinite changes in the quantity demanded. Perfectly Inelastic demand(Ed=0):-Demand of a commodity does not change at all irrespective of any change in its price. Unitary elastic demand(Ed=1):-When the percentage change in demand(%) of a commodity is equal to the percentage change in price. Greater than unitary elastic demand(Ed>1):-When percentage change in demand of a commodity is more than the percentage change in its price. Less than unitary elastic demand(Ed<1):-When percentage change in demand of a commodity is less than the percentage change in its price. FREQUENTLY ASKED QUESTIONS– CBSE BOARD EXAMINATIONS Define Microeconomics. Why an economic problem does arise? What are the central problems of an economy? Define opportunity cost. Define marginal opportunity cost. Distinguish macro’economics. Why PPC is Concave from the origin. Define Marginal Rate of Transformation (MRT) Explain the problem, of ‘what to produce’and ‘how to produce.’ Explain the central problem of how to produce with the help of an example. What is an indifference curve? Define Utility. What is budget set? Define budget line. Define MRS. A consumer consumes only two goods.Explain the conditions of consumer’s equilibrium with the help of Ica nalysis. For a consumer to be in equilibrium,why must MRS be equal to the ratio of price of two goods?