problem1:

a) Differentiate between the demand curve and demand equation?

b) Describe the contradiction among the two?

c) describe how is this contradiction resolved?

problem 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?

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.

problem 5:

a) Describe the idea of consumer surplus.

b) Describe the concept by using the help of a graphical excise.