Organisation of Data — Economics STD 11 Commerce — Question

Explain with the help of a diagram the effect of an increase in demand for a commodity on its equilibrium price and equilibrium quantity.

Find out the price index of the year 2015 assuming 2014 as the base year of the following data by using simple average of price relative method.

Commodity	Price in 2014 (₹) Per Quintal	Price in 2015 (₹) Per Quintal
Wheat	800	900
Sugar	1100	1200
Rice	400	600
Potato	500	700
Salt	300	500

Given the following data:

Item	Base year		Current Year
	Price (₹)	Quntity	Price (₹)	Quntity
A	1	10	2	5
B	1	5	X	2

What is procedure of drawing histogram.

From the following table, find out the level of the output at which the producer will be in equilibrium. Give reasons for your answer.

Output (Units)	Marginal Revenue (Rs.)	Marginal Revenue (Rs.)
1	8	10
2	8	8
3	8	7
4	8	8
5	8	9

Define marginal opportunity cost along a PPC.

The following table shows the total cost schedule for a competitive firm. It is given that the price of the good is ₹ 10. Calculate the profit at each output level. Find the profit-maximizing level of output.

Output	TC (₹)
0	5
1	15
2	22
3	27
4	31
5	38
6	49
7	63
8	81
9	101
10	123

Explain whether marginal cost can increase when average cost decreases.