Microeconomics

Chapter – 1: Concept of Demand – III (Movement & Shift)

Q3. Distinguish between change in quantity demanded and change in demand. or Differentiate between movement along a demand curve and shift in a demand curve. Ans. Change in quantity demanded means change in demand that takes place due to a change in price. Movement along a demand curve refers to a change in quantity demanded …

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Chapter – 2: Elasticity of Demand – I

Q.1. (a) Give the meaning of, or differentiate between price elasticity, income elasticity and cross elasticity of demand. Draw appropriate diagrams. (b) Explain the relationship between price elasticity of demand, income elasticity of demand and elasticity of substitution. Ans. (a) Price Elasticity of Demand. Price elasticity of demand measures the degree of responsiveness of quantity …

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