Kamakshi's brother Divij gave her Rs.1,000 on the occassion of Rakshabandhan. She wants to buy a jeans which costs Rs.900 and a pair of shoes which cost Rs. 600. However, with the available amount, she cannot purchase both and has to choose amongst the two. Which problem is being faced by Kamakshi?
Vishnu consumes two commodities X and Y, whose prices are Rs.16 and Rs.24 per unit respectively. His\[_{X}\]= 6 and \[_{y}\]= 4, then according to utility approach, state whether Vishnu is in equilibrium? If not, then tell what should he do to achieve equilibrium. Differentiate between individual demand curve and market demand curve.
Price of a commodity rises from Rs.5 to Rs.6. As a result, its demand falls from 100 units m to 80 units. Find out Price Elasticity of Demand\[({{E}_{d}})\] by percentage method. If a fact is given that the slope of a straight line demand curve =\[\frac{\Delta }{\Delta Q}\], how do you if relate it to own price elasticity of demand? Also, find price elasticity of demand, if demand is perfectly elastic.
A firm's fixed cost is Rs. 2,000.Compute Total Variable Cost (TVC), Average Variable Cost (AVC), Total Cost (TC) and Average Cost (AC) with the help of the following table.
Explain with the help of diagram, the effect of following changes on the demand for a commodity. (i) A fall in the price of complementary goods (ii) A rise in the price of substitute goods.
In an economy, investment increases by Rs.100 crore. As a result, income increase by Rs.250 crore. What is the value of multiplier? What does this imply?
Distinguish between voluntary unemployment and involuntary unemployment. Or Write any three points of difference between ex-ante investment and ex-post investment.
'Mission Develop India' is the plan of government to create basic infrastructure. It comprises of projects on irrigation, roads, housing, water supply and telecommunication connectivity. Above stated example is a government expenditure or government revenue. Elaborate it. Also, state the impact of this programme on rural growth.
What do you understand by Aggregate Demand (AD)? Also explain its components briefly. Or Given that National Income is Rs.80 crore and Consumption Expenditure is Rs.64 crore, find out Average Propensity to Save (APS). When income rises to Rs.100 crore and Consumption Expenditure to Rs.78 crore, what will be the Average Propensity to Consume (APC) and Marginal Propensity to Consume (MPC)?
How is exchange rate determined under flexible exchange rate system? Also enumerate the sources of demand and supply of foreign exchange. If demand for foreign exchange is continuously rising then which economic value stands affected?