MICROECONOMICS CH : 5 THEORY OF DEMAND — Economics STD 11 Commerce — Question

What do you mean by a statistical project?

What is a false base line? How is it different from a kinked line?

"If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease." Explain using diagrams.

Distinguish between average revenue and marginal revenue. Mention also the relation between them.

What do you find in following cases correlation/ causation?

1. When investigating the cause of crime in New York City in the 80s, when they were trying to clean up the city, an academic found a strong correlation between the amount of serious crime committed and the amount of ice cream sold by street vendors!
2. The size of your palm is negatively correlated with how long you will live (really!). In fact, women tend to have smaller palms and live longer.
3. I heard of a study a few years ago that found the amount of soda a person drinks is positively correlated to the likelihood of obesity.

Calculate arithmetic mean from the following data:

x	f
Less than 10	5
Less than 20	15
Less than 30	55
Less than 40	75
Less than 50	100

Explain the relationship between marginal revenue and total revenue.

Explain the conditions leading to maximisation of profits by a producer. Use marginal cost and marginal revenue approach.

The annual salaries of four men were ₹ 5,000, ₹ 6,000, ₹ 6,500 and ₹ 30,000.

1. Find the arithmetic mean of their salaries.
2. Is this mean representative value of the series?

Distinguish between simple aggregative index and simple average of relatives.