Define and distinguish between :

(a)

Are elasticity and point elasticity.

(b)

Price elasticity and cross-elasticity, and

(c)

Income elasticity and price elasticity.

4.

What is meant by demand schedule, demand curve and demand function?

5.

Which of the following commodities has the most inelastic demand and why?

(a)

Soap

(b) Salt

(c) Penicillin

(d) Cigarettes, and

(e)

Ice cream.

6.

Explain the following concepts separately :

(i)

Income-elasticity of demand.

(ii)

Price-elasticity of supply.

(iii)

Elasticity of price expectations.

What

useful

information

do

these concepts of elasticity provide to

management?

7.

Given the demand function

Q

d

= 12 p

(a)

find the demand and marginal revenue schedules,

(b)

plot the AR and MR Schedules,

(c)

find marginal revenue when P = 10, 6, 2 and

(d)

estimate the elasticity co-efficient of the demand curve, when the total

is at maximum

8.

What is the law of demand? Explain with the help of demand schedule and

demand curve what are the exceptions to this law?

9.

Why does a demand curve slope downward to the right? Can a demand curve

slope upward to the right under any condition?