shift in demand curve.14. Define demand for a commodity. Explain the various factors which determine demandfor a commodity.15. Distinguish between: a. Extension and increase in demand b. Contraction and decreasein demand.16. A market for a commodity consists of two individuals A and B whose demand functionsfor the commodity are given below. Find out the market demand function.QA= 35-2P,QB= 75.5- 0.75P 17. Explain why does the demand curve slope downwards to the right? Can you conceive ademand curve which slopes upwards to the right?18. Define Price Elasticity of Demand and state how it is measured?19. Distinguish between elastic and inelastic demand. Why is the demand for somecommodities more elastic than for others?20. What is meant by elasticity of demand? Explain its degrees and methods ofmeasurement.21. State and explain the law of diminishing marginal utility. Why does the law operate?22. “As more units of a good are consumed or purchased total utility eventually increases ata decreasing” Discuss.23. Compare indifference curve analysis of demand with Marshallian cardinal utilityanalysis. Which do you think is superior?24. Distinguish between cardinal utility and ordinal utility? Which is more realistic?25. Explain the indifference curve and their assumptions. How is it an improvement overutility analysis?26. What is an indifference curve? Discuss its characteristics.2
27. Explain with the help of indifference curve how consumer’s equilibrium shifts byincome effect, price effect and substitution effect.28. Explain the law of supply with the help of suitable diagram.UNIT – III: THEORY OF PRODUCT PRICING29. What is cost of production? Distinguish between fixed costs and variable costs.30. Explain various short-run and long –run cost curves. Also explain their inter relationships.