Fundamental of Economics

Market demand curve

Percentage method of price elasticity of demand
Marginal rate of substitution
Substitution effect
Cash subsidy vs Kind subsidy
Indifference curve
Fixed and Variables inputs
Iso-cost line
Law of demand
Cross elasticity of demand
Giffen Goods
Budget line
Weak ordering
Marginal rate of technical substitution
Two determinants of individual demand
Income elasticity of demand
Engel curve
Strong ordering
Marginal production
Expansion path
Degree of cross elasticity of demand
Price consumption curve
Marshall’s measurement of consumer surplus
Ridge lines
Types of income elasticity of demand
Extension and contraction of demand
Normal goods vs Inferior goods
Linear homogeneous production function
optimum combination of factors
Difference between Law of demand and Elasticity of demand
Relationship between Average Revenue, Marginal revenue and Elasticity of Demand
Income consumption curve
Consistency in selection
Income elasticity and cross elasticity of demand
Short run and Long-run
Economic Region of production

Unit-1
Q. Explain the law of demand. Why demand curve slope downwards to the rights? Explain
the circumstances in which demand curve slope upwards. What are exceptions of law of
demand.
Q. Discuss the concepts of total revenue, average revenue and marginal revenue. Explain
the relationship between average revenue, marginal revenue and elasticity of demand.
Q. difference between individual demand and market demand. Explain the factors affect the
market demand.
Q. What is elasticity of demand? what are its types? Explain the importance of price
elasticity of demand.
Q. Define price elasticity of demand. Explain various methods of measuring price elasticity of
demand. Importance.
Q. What is elasticity of supply? Discuss factors which influence elasticity of supply.

unit-2
Q. What do you mean by consumer equilibrium? Explain the consumer’s
equilibrium with help of indifference curve. What brings change in consumer’s
equilibrium? Discuss the effect of change` in commodity price and consumer’s
income on consumer’s equilibrium.
Q. What is income consumption curve? Define Engel curve. How is Engel curve
derived from income consumptions curve?
Q. Define indifference curve. Discuss the properties and importance of indifference
curve.
Q. What is Price effect, Income effect, and Substitution effect? Show how price effect
is a sum of income effect and substitution effect in case of normal goods.
Q. Explain the Price effect, Income effect, and substitution effect with help of
indifference curve. How income effect and substitution effect is separated from
price effect.

unit-3
Q. What is consumer’s surplus. How is it measured? Explain its measurement with
the help of utility analysis and indifference curve analysis.
Q. Critically examine the revealed preference theory of demand.

Unit-4
Q. Explain the law of variable proportions with the help of a table and diagram. Why
does this law apply? Which is the best stage of production? what are causes of its
application?
Q. What is Isoquants? Discuss the main properties.
Q. What is Isoquent curve? Explain the law of returns to scale with the help of
isoquents.
Q. Explain law of diminishing returns. What are the causes of its applications and why
does it mainly apply agriculture?
Q. Explain with diagram returns to scale. Explain in detail the three stages of returns
to scale. Explain returns to scale with help of isoquant curves.
Q. What is producer’s optimisation? Discuss the condition of producer’s optimisation
through isoquent curves.