MICROECONOMICS CH : 3 CONSUMER'S EQUILIBRIUM UTILITY ANALYSIS — Economics STD 11 Commerce — Question

Discuss in brief, the methods of constructing weighted index numbers.

State the major steps involved in the construction of wholesale price index numbers.

To check the quality of two brands of lightbulbs, their life in burning hours was estimated as under for 100 bulbs of each brand.

Life	No. of bulbs
(in hrs.)	Brand A	Brand B
0-50	15	2
50-100	20	8
100-150	18	60
150-200	25	25
200-250	22	5
	100	100

1. Which brand gives higher life?
2. Which brand is more dependable?

Draw a histogram of the following data:

Age (in years)	0-10	10-20	20-30	30-40	40-50	50-70	70-100
No. of Persons	5	15	18	22	35	30	15

How is the equilibrium price and equilibrium quantity of a normal commodity affected by an increase in the income of its buyers? Explain with the help of a diagram.

Give two examples each of sample, population and variable.

In a city 45 families were surveyed for the number of Cell phones they used. Prepare a frequency array based on their replies as recorded below.

1	3	2	2	2	2	1	2	1	2	2	3	3	3	3
3	3	2	3	2	2	6	1	6	2	1	5	1	5	3
2	4	2	7	4	2	4	3	4	2	0	3	1	4	3

Explain the need of weights in index numbers. Explain commonly used weighting schemes.

Why do we need an index number?