MICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND — Economics STD 11 Commerce — Question

MP = AP when AP is maximum.

Giving reasons, state whether the following Its are true or false.
Average cost falls only when marginal cost falls.

Greater the alternative uses of a commodity, lesser is the elasticity of demand.

Decrease in demand refers to contraction of demand.

Giving reasons, state whether the following statements are true or false:
In a state of equilibrium, quantity demanded will be less than the quantity supplied.

In case of complementary goods, a rise in price of Good-X causes a rise in demand for Good-Y.

Supply may remain constant even when quantity supplied changes.

Giving reasons, state whether the following statements are true or false.
Under diminishing returns to a factor, total product continues to increase till marginal product reaches zero.

It is quantity demanded (and not demand for a commodity) that changes with respect to its own price.

Initially total product increases but ultimately falls when there are diminishing returns to a factor.