University of Delhi 2009 B.Com Principles of economics -iv - Question Paper

B.COM
PAPER IV -PRINCIPLES OF ECONOMICS
(N.C. ADMISSION OF 2006 ONWARDS)
TIME ALLOWED-3 HOURS MAXIMUM MARKS -100
Attempt any 5 ques.

Q.1. discuss how equilibrium price and volume are determined in a competitive market.Examine the effects of an increase in demand on equilibrium price and quantity?

Q.2. (a) explain the factors that determine elasticity of demand?
(b)Draw demand curves for the commodity when its demand is :
i) perfectly inelastic
ii) perfectly elastic ,and
iii) unitary elastic
(c) From the market demand schedule for apples provided below,calculate price elasticity of demand if price falls from rupees 50 per kilo:

PRICE/kg DEMAND
70 20
60 25
50 30
40 35

Q.3. discuss consumer's equilibrium with the help of indifference curves and the price line. Analyse income and substitution effect of a fall in the price of a Giffen good.

Q.4. (a) Draw a short run avg. cost curve with the help of avg. variable cost and avg. fixed cost curves.
(b) discuss relationship ranging from short run avg. cost and long run avg. cost curves. What is various in the very long run?

Q.5. (a) 'A perfectly competitive market maximizes the sum of producers ' and consumer's surplus'.Explain with the help of diagram.
(b) Why do the firms produce less than optimum size of output under imperfect competition?Explain.

Q.6. discuss in brief the different circumstances under which market fails to allocate resources efficiently.

Q.7. Why do a few governments give protection to their domestic industries ? elaborate the methods adopted by them to give protection?

Q.8. Write short notes on any 2 of the following-
a) Concept of economic rent
b) Entry barriers
c) Factor price differentials

Earning:   Approval pending.