Class 12th Economics - Theory of Consumer Behaviour Case Study Questions and Answers 2022 - 2023
By QB365 on 09 Sep, 2022
QB365 provides a detailed and simple solution for every Possible Case Study Questions in Class 12th Economics Subject - Theory of Consumer Behaviour, CBSE. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.
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Theory of Consumer Behaviour Case Study Questions With Answer Key
12th Standard CBSE
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Reg.No. :
Economics
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The quantity of a commodity that a consumer is willing to buy and is able to afford, given prices of other goods and consumer's income and his tastes and preferences is called' demand' for the commodity. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the 'Demand function'.
The demand function can also be represented graphically as the 'demand curve'. The demand curve is a relation between the quantity of the good chosen by a consumer and the price of the good. It gives the quantity demanded of the given good by the consumer at each price.
The slope of the demand curve measures the rate at which quantity demanded changes w.r.t. its price. It is estimated as \(-\frac{\Delta p}{\Delta \boldsymbol{q}}\). Slope is the rate at which demand curve slopes downwards.
(a) Elaborate the concept of "Demand function".
(b) What do you understand by the 'Slope of the demand curve'?
(c) What does the negative (-) sign in the above formula indicate?(a)
Case Study
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Answers
Theory of Consumer Behaviour Case Study Questions With Answer Key Answer Keys
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(a) The relation between the consumer's optimal choice of the quantity of a good and its price is very important. This relation is known as the "Demand function".
The demand function can also be represented graphically as the 'demand curve', which gives the quantity demanded of the given good by the consumer at each price.
(b) The slope of the demand curve measures the rate at which quantity demanded of a good changes w.r.t. its price. It is estimated as \(-\frac{\Delta p}{\Delta \boldsymbol{q}}\) . Slope is the rate at which demand curve slopes downwards.
(c) Negative sign indicates inverse relationship between the price and the quantity demanded of the given good.
