Economics Short Answer Type Questions

                What do you mean by budget line? What are the reasons of change in budget line?

                Explain the relationship between total utility and marginal utility with the help of schedule.


What changes will take place in total utility when –

                Marginal utility curve remains above X–axis

                Marginal utility curve touches X–axis

                Marginal utility curve lies below X–axis.

                State three features of indifference curve.

                Why does two indifference curves not intersect each other?

                Under what situations there will be parallel shift in budget line?

                Explain the effect of a rise in the prices of ‘related goods’ on the demand for a good X.

                Why does demand of a normal good increases due to increase in consumer’s income?

                Explain following factors effecting Price Elasticity of Demand

Nature of commodity

Availability of substitutes

Postponement of the use

                Distinguish between expansion of demand and increase in demand with the help of diagram.

                Measure Price Elasticity of Demand on the following points of a straight line demand curve :

Centre point of the demand curve.

Demand curve intercepting y-axis

Demand curve intercepting x-axis.