MICROECONOMICS CH : 1 ECONOMICS AND ECONOMY — Economics STD 11 Commerce — Question

Forward shift in demand curve occurs when own price of the commodity rises, and consumer's income remains constant.

In a free economy, decision relating 'for whom to produce' enhances the gulf between rich and the poor.

In response to constant and positive marginal revenue, both total revenue and average revenue tend to rise at a constant rate.

AC curve tends to be U-shaped.

A consumer is in equilibrium and buys commodities X and Y. When price of X falls, he starts buying more of X than Y.

A firm can quit the industry in the short run also.

Giving reasons, state whether the following statements are true or false.
With a fall in income, demand for normal goods will rise.

Indifference curve is not convex to the origin in case of two normal goods.

Giving reasons, state whether the following statement are True or False.
Ceteris paribus, if price rises, quantity supply of goods will fall.

As output rises, the difference between total cost and total variable cost tends to fall.