Q1. Define the term opportunity cost with suitable ex.
Q2. Illustrate and describe the Law of demand with proper graph.
Q3. State that the price elasticity of demand for gasoline is around 0.4. The price of a gallon of gasoline is now Rs.2, 000. Government wishes to decrease the use of gasoline by 20%. Describe by how much must it raise the price?
Q4. Describe the concept of indifference curve.
Q5. What do you mean by Returns to scale in detail?
Q6. Define the term learning curve by using appropriate sketches.
Q7. A consumer expends her income on two goods X and Y. If a raise in price of X by Re. 1 leaves her consumption of Y unaffected, then determine the price elasticity of the demand for X?