Economics - Study Mode

[#921] Match the following. List-I List-II a. Responsiveness of demand to change in price 1. Income elasticity of demand b. Responsiveness of demand to change in tastes 2. Price elasticity of demand c. Responsiveness of demand to change in income 3. Cross elasticity of demand d. Responsiveness of demand to change in price of related goods 4. Taste elasticity of demand
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(D) a-2, b-4, c-1, d-3

[#922] Budget is not related to
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(D) Possible events

[#923] After independence, who was appointed by the government of India as the first chairman of the 'national income committee'?
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(A) Prof. Mahalanbis

[#924] The normal LAC curve is influenced by
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(B) economies and diseconomies of large scale production

[#925] Demand curve can be derived from
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(C) Both 'a' and 'b'

Explanation

Solution: Demand curve can be derived from MU curve and PCC. Marginal utility and the law of diminishing marginal utility can be used to provide insight into market demand, the law of demand, and the demand curve. Downward-sloping price consumption curve for a good means that demand for the good is elastic, upward-sloping price consumption curve means that demand for the good is inelastic and horizontal straight-line price consumption curve means that demand for the good is unit elastic.