Chapter 5 - Producer's Behaviour Economics Solutions for Class 12 Commerce Economics

Chapter 5 - Producer's Behaviour

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets

Match the following

State whether the following statements are TRUE and FALSE.

i. If price falls, the supply curve will shift to left.

ii. Stock is the source of supply.

iii. Supply is indirectly related to price.

iv. Geometric Method is also known as Point Method.

v. Total Cost is the total expenditure incurred by a firm.

vi. Supply for perishable goods is inelastic.

Define or explain the following concepts:

i. Total Cost

ii. Stock

iii. Output

iv. Elasticity of Supply

v. Marginal Cost

vi. Average Revenue

Give reasons or explain:

i. Supply is directly related to price.

ii. Stock can exceed supply.

iii. When price rises, supply expands.

iv. The supply of agricultural commodity is relatively inelastic.

v. With a slight change in the price, if supply varies in a greater proportion then supply is said to be relatively elastic.

Distinguish between the following:

i. Stock and Supply

ii. Individual Supply and Market Supply

iii. Extension and Contraction of Supply

iv. Relatively Elastic Supply and Relatively Inelastic Supply

v. Average Revenue and Average cost

Write short notes on the following:

i. Elasticity of supply.

ii. Market supply schedule.

iii. Change in supply.

iv. Percentage method.

v. Labour supply curve.

Answer the following questions:

i. What are the assumptions of the law of supply?

ii. What are the determinants of supply?

iii. What are the exceptions to the law of supply?

iv. Explain the concept of Total Cost, Average Cost and Marginal Cost.

Do you agree or disagree with the following statements? Give reasons.

i. There is no difference between stock and supply.

ii. Price is the only determinant of supply.

iii. The backward slopping supply curve shown as inverse relationship between supply of labour and wage rate.

Answer the following about 200 to 250 words each

State and explain the law of supply. What are the assumptions of this law?

State and explain the law of supply. What are the exceptions to this law?

Answer the following about 200 to 250 words each

Explain various types of Price elasticity of Supply.

Explain various methods to measure Price Elasticity of Supply.