ST.

XAVIER’S COLLEGE (AUTONOMOUS), KOLKATA

Department of Commerce (Morning and Evening)
Semester I Mid-Semester CIA Examinations, December 2020
Subject: MICRO ECONOMICS Date: 9-12-2020
Subject Code: (BCHGE130) Time: 8:00am – 9:30am
Full Marks: 40 Duration: 1:30 hrs
PLEASE READ THESE INSTRUCTIONS BEFORE YOU START WRITING:
 Only hand written answer scripts (using black or blue ink) on A4 size sheets will be
considered.
 On top of each page the following information should be entered by the student: Name,
Roll Number, Subject, Date, and Page Number.
 Of the questions attempted, the answers to only the first required number of questions (as
stipulated in the question paper) will be evaluated. So please do not attempt extra questions.
 Students will be writing legibly their answers, scanning them and sending the entire answer
script as one PDF file to the room specific email address mentioned below within 30 minutes
of the completion of the examination.
 Answer in your own words as far as practicable.
 Save the scanned pages to a single PDF file and name the document accurately as explained.
Room No._Roll No._Paper Code.PDF (example: RoomNo.42_RollNo.147_BCHCR610)
 In the subject field of your email, please write “Answer Script – Room No., Roll No, Paper
Code” (example: “Answer Script – RoomNo.42_RollNo.147_BCHCR610”).
 The scanned answer scripts should have enough clarity to enable evaluation.
 No multiple submissions would be allowed.
Note: Emails ids for submission of answer scripts - Answer scripts will be accepted
only in the room specific emails and NOT in any other email.
B.COM (MORNING) ROOMS Email ids for submission of answer scripts
32 morningcom32@sxccal.edu
33 morningcom33@sxccal.edu
36 morningcom36@sxccal.edu
37 morningcom37@sxccal.edu
38 morningcom38@sxccal.edu
39 morningcom39@sxccal.edu
40 morningcom40@sxccal.edu
41 morningcom41@sxccal.edu
42 morningcom42@sxccal.edu
43 morningcom43@sxccal.edu

B.COM (EVENING) ROOMS Email ids for submission of answer scripts

33 comeveroom33@sxccal.edu
36 comeveroom36@sxccal.edu
37 comeveroom37@sxccal.edu
38 comeveroom38@sxccal.edu
39 comeveroom39@sxccal.edu
40 comeveroom40@sxccal.edu
 ST. XAVIER’S COLLEGE (AUTONOMOUS), KOLKATA

CONTINUOUS INTERNAL ASSESSMENT (CIA)

SEMESTER I MICRO ECONOMICS FULL MARKS: 40

(BCHGE130)
TIME: 1: 30 HRS DATE: 09/12/2020
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Group – A

Answer any FOUR questions (5X4=20)

1. Explain intuitively and graphically the nature of average and marginal cost curves in the short run.

2. (a) What do you mean by “Expansion Path” ?

(b) Derive expansion path for the following production function, Q=K 3/2 L1/2, when w= Rs 4 and r = Rs 5.
Comment on the nature of expansion path. (2+3)
3. Explain the adjustment procedure necessary to attain producer’s equilibrium when the producer operates
at a point where, MRTS < (w/r) ratio. ( Intuitive and graphical explanations are required).

4. (a) Distinguish between the shift and rotation of budget line.

(b) Let U = (XY)1/2 be the utility function and PX= 5 and PY = 1 and Money income = 120 . Determine the
equilibrium quantities of X and Y . (2+3)
5. Derive the indifference curve using the axioms of choice under ordinal utility approach.
6. What is price consumption curve ( PCC )? Explain the nature of PCC in case of a Giffen good and derive
the appropriate demand curve in this case. ( 2 + 1.5+1.5)

Group – B
Answer any TWO questions (2X10 =20)
7. (a) Analyze the impact of a rise in nominal money income on the equilibrium purchases of X and Y
when good X is Normal and good Y is Inferior at constant relative prices. ( Use indifference curves
and budget lines) [5]
(b) Derive the relationship between Average Product and Marginal Product curves
mathematically and graphically. [5]

8. Define income effect and substitution effect. With the help of a proper diagram explain the decomposition of
price effect into income effect and substitution effect in case of a Normal good. [ 3+7]
9. Consider the following demand function :
Qx = -10 Px + 0.02 M + 5 Pr + 2T
where Px= Price of the good,x ; M= income ; Pr = price of a related good ; T = A quantitative index of taste
a) Derive the equation of demand curve when M= 10000, Pr = 20 , T = 5. Plot graphically.
b) What happens to the demand curve when income rises to 12000 ? Show numerically and graphically.
c) Find the own price, cross price and income elasticity of demand at Px= 10, M= 10000 , Pr=20 and T=5
and comment on your results. (2+2+6)
10. (a) Explain the three stages of short run production intuitively and graphically.
Which is the operative stage and why? (4+1+1)
(b) Consider the following total cost function: TC = 1000Q – 40Q2 + 2Q3. Determine the
level of outputs at which AC and MC are minimized. (2+2)

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