Question1:
a) Differentiate between the demand curve and demand equation?
b) Describe the contradiction among the two?
c) Explain how is this contradiction resolved?
Question 2:
a) Describe the idea of SE and IE.
b) Illustrate how can the law of demand be described with the help of SE and IE?
Question 3: A supply-demand schedule is given. In this context:
a) Describe the concept of equilibrium.
b) Analyze the stability concept of the equilibrium by considering ‘price’ as adjusting variable.
c) Describe the importance of the market equilibrium.
Question 4: Assume that a supply and a demand curve be given. In this regard, describe the possible effects if:
a) Only supply increases, demand remains unchanged.
b) Only demand increases, supply remains unchanged.
c) Both demand and supply increase.
Question 5:
a) Describe the idea of consumer surplus.
b) Describe the concept by using the help of a graphical excise.