a) Differentiate between the demand curve and demand equation?
b) Describe the contradiction among the two?
c) describe how is this contradiction resolved?
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?
problem 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.
problem 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.
a) Describe the idea of consumer surplus.
b) Describe the concept by using the help of a graphical excise.