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Economics XII D, E



1. “If the product price increases, a family’s spending on the product has to increase. Defend or refute.

2. What does a leftward shift of the demand curve shows?

3. There are train and bus services between New Delhi and Jaipur. Suppose that the train fare between the two cities comes down. How will this affect the demand curve for bus travel between the two cities?

4. How will an increase in the price of tea affect the demand for sugar?

5. Does increase or decrease in income of the consumer has same effect on every type of commodity?

6. Distinguish between individual demand and market demand with the help of a numerical example.

7. What is the relation between good X and good Y if with a fall in the price of X; demand for Y (i) Rises and (ii) falls? Give reasons.

8. A consumer wants to consume two good. The price of two goods are Rs. 2 and

Rs. 5 respectively. The consumer’s income is Rs. 30.

(i) Write down the budget line equation

(ii) How of good X he can consume if he spends his entire income on that good?

(iii) How much of good Y he can consume if he spends his entire income on

that good?

(iv)What is the slope of the budget line?

9. Suppose a consumer’s preferences are monotonic. What can you say about his preferences ranking over the bundles (8,8),(7,8), (9,8).

10. Give 3 examples each of substitute goods and complementary goods.

11. Given the price of a good, how does the consumer decide as to how much of that

good to buy?

12. Why does indifference curve to right show more utility? Explain.


Ms Rekha Rajan K

PGT Economics


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