Theory of consumer behaviour — Economics STD 11 Commerce — Question

What are the effects of 'price-floor' (minimum price ceiling) on the market of a good? Use diagram.

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

Output (units)	Marginal Revenue	Marginal Cost
1 2 3 4 5	8 8 8 8 8	10 8 7 8 9

Draw a single diagram of the Average Revenue and Marginal Revenue curves of a firm which can sell any quantity of the good at a given price. Explain.

'Developing countries have constraints'. Do you agree?

Explain the change in demand of a good on account of change in prices of related goods.
OR
How is demand for a commodity affected by the rise in price of related goods? Explain with the help of diagram.

OR
Explain how the demand for a good is affected by the price of its related goods. Give examples.

Distinguish between explicit costs and implicit costs. Give examples.

Explain the problem of 'what to produce'.
OR
Explain the central problem of 'choice of products' to be produced.

What do you mean by an ‘inferior good’? Give some examples.

Goods X and Y are substitutes. Explain the effect of fall in price of Y on demand for X.