Economics, Politics and Social Science

Question Set for Preparatory Material 1

1. Define the terms "Consumer Surplus" & "Producer Surplus"
2. Using the consumer and producer surplus theory, explain total surplus
3. What is the Law of Demand? Give a real life example for it.
4. Define elasticity of a good and differentiate between perfectly elastic and
perfectly inelastic goods
5. Give examples for perfectly elastic and inelastic goods.

Arunangshu | Hitaish | Rakesh | Shashank | Soham | Tushar eps@iimk.ac.in