MICROECONOMICS CH : 13 MARKET EQUILIBRIUM UNDER PERFECT COMPETITION AND EFFECTS OF SHIFTS IN DEMAND AND SUPPLY — Economics STD 11 Commerce — Question

The following news was printed in the Economic Times: Petrol and diesel prices were cut by ₹ 2 per litre each as international oil prices slumped to a five-year low.
Use a diagram and economic theory to analyse the impact on the demand for cars in India.

On the basis of information given below, calculate average revenue and marginal revenue and explain their mutual relationship.

Units of a Good	1	2	3	4	5	6
Total Revenue (₹)	4	7	9	10	10	9

Calculate Laspeyre's price index number from the following data.

Commodity	Price		Quantity Bought
	2014	2015	2014	2015
X	50	52	10	12
Y	7	9	3	4
Z	3	5	7	7

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

Explain the measurement of price elasticity of demand with the help of total expenditure method.

From the following information about a firm, find the firm's equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also find profit at this output.

Output (Units)	Total Revenue (₹)	Total Cost (₹)
1	6	7
2	12	13
3	18	17
4	24	23
5	30	31

With the help of the table given below, find producer's equilibrium using MR and MC approach. Give reason for your answer.

Quantity Sold (Units)	TR  (₹)	AC (₹)
1	20	20
2	40	15
3	60	12
4	80	10
5	100	12
6	120	15

How do changes in marginal revenue affect total revenue?

Distinguish between a bar diagram and a histogram.

Calculate weighted aggregative price index number from the following data using Paasche's method.

Commodity	Base Year		Current Year
	Price (₹)	Quantity	Price (₹)	Quantity
A	10	30	12	50
B	8	15	10	25
C	6	20	6	30
D	4	10	6	20