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Case Study Questions Class 11 Economics

Students should refer to the following Case Study Questions Class 11 Economics which have been provided below as per the latest syllabus and examination pattern issued by CBSE, NCERT, and KVS. As per the new examination guidelines issued for the current academic year, case study-based questions will be asked in the Grade 11 Economics exams. Students should understand the case studies provided below and then practice these questions and answers provided by our teachers.

Class 11 Economics Case Study Questions

Please click on the links below to access free solved Case Study Questions for Class 11 Economics. We have provided chapter-wise case studies with solved questions. Please carefully understand each case and related questions before attempting the questions. Our teachers have provided answers to all questions so that you can compare your answers.

We have also provided MCQ Question for Class 11 Economics which will be asked in the upcoming exams in Grade 11. As this year many questions will be MCQ-based and there will also be a few case studies in the question papers. Students should go through all chapter-wise Case Study Questions for Class 11 Economics. We have provided many other useful links and study material for Standard 11th Economics for the benefit of students. All content has been provided for free so that the students can take full benefit and get better marks in examinations. Incase any student faces any doubts, please provide your comments in the section below so that our faculty is able to respond to your questions.

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CBSE Sample Papers for Class 11 Economics Set 1 with Solutions

January 4, 2024 by Bhagya

Students must start practicing the questions from CBSE Sample Papers for Class 11 Economics with Solutions Set 1 are designed as per the revised syllabus.

Time : 3 Hours Maximum Marks : 80

General Instructions:

• This question paper contains two sections: Section A – Statistics for Economics Section B – Introductory Micro Economics
• This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
• This paper contains 4 Short Answer Questions type questions of 3 marks each to he answered in 60 to 80 words.
• This paper contains 6 Short Answer Questions type questions of 4 marks each to he answered in 80 to 100 words.
• This paper contains 4 Long Answer Questions type questions of 6 marks each to he answered in 100 to 150 words.

Section – A

Question 1. Read the following Assertion (A) and Reason (R) and choose the correct alternative: [1] Assertion (A): The Class Interval needs to be continuous while drawing a Histogram. Reason (R): Histogram is a rectangular diagram using frequency distributions which are joined to one another. Alternative: (A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A) (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (C) Assertion (A) is true, but Reason (R) is false. (D) Assertion (A) is false, but Reason (R) is true. Answer: Option (B) is correct Explanation: It is necessary to prepare a histogram; the series of data should be in continuous series. It is a graphical presentation of a frequency distribution of a continuous series.

Question 2. The investigator appoints local persons or correspondents at different places. They collect information in their own way and furnish the same to the investigator.[1] Identify the above source of data. (A) Primary Data Source (B) Secondary Data Source (C) Both (A) & (B) (D) Neither (A) Nor (B) Answer: Option (A) is correct Explanation: Primary data is one which an investigator collects for the first time for a particular purpose. Information from local source or correspondents are primary data sources under which the investigator appoints local persons or correspondents at different places

Question 3. An index number which accounts for the relative importance of the item is known as ………………. . [1] (A) Simple Index Number (B) Weighted Index Number (C) Aggregate Index Number (D) Average Index Number Answer: Option (B) is correct Explanation: A weighted index is a stock index in which each company included in the index makes up a fraction of the total index proportionate to that company’s share stock price per share. It is the weighted average of the prices of different goods.

Question 4. There are two statements given below, marked as Statement (I) and Statement (II). Read the statements and choose the correct option: [1] Statement – I The Arithmetic Mean is the amount secured by dividing the sum of value of the items in a series by their numbers. Statement – II An Average is a figure that represents the whole group. (A) Only I is true (B) Only II is true (C) Both I & II are true (D) Both I & II are false. Answer: Option (C) is correct Explanation: Mean is the number which is obtained by adding the value of all the items of a series and dividing the total by the number of items and it is a single figure that represent the whole series.

Question 5. Which of the following facts is statistics: [1] (A) Ram secured 66% marks in English. (B) Ram secured 80% marks in Mathematics. (C) Ram secured 90% marks in Economics. (D) Ram secured 90% marks in Economics, this year, whereas he secured 80% marks in Economics previous year. Answer: Option (D) is correct Explanation: Ram secured 90% marks in Economics but he gets 80 % in previous year. This would mean making a comparison over different years marks of economics. This is facts concept in statistics.

Question 7. Which of the following is not a method to measure correlation: [1] (A) Karl Pearson’s Coefficient of correlation. (B) Spearman’s rank difference method. (C) Scatter diagram method. (D) Step Deviation Method Answer: Option (D) is correct Explanation: There are three methods to measure correlation – Karl Pearson’s Coefficient of Correlation, Spearman’s Rank Difference Method and Scatter Diagram Method.

Question 8. Find out the mode value from the following data: [1] 8,5,10,8,5,11,9,6,5,8,5,3,5,3,8,5,8,9,5,8 (A) 8 (B) 6 (C) 5 (D) 11 Answer: Option (C) is correct Explanation: On inspection of the given series, the value of 5 occurs most frequently in the series. Thus, the mode value is 5.

Question 9. There are two statements given below, marked as Statement (I) and Statement (II). Read the statements and choose the correct option: [1] Statement (I) – If we measure the weight of students of class 10th, then the weight of the student will be called variable. Statement (II) – A variable may also be called a data item. (A) Statement I is true and statement II is false (B) Statement I is false and statement II is true (C) Both statements I and II are true (D) Both statements I and II are false Answer: Option (C) is correct Explanation: A characteristic, number, or quantity which is capable of being measured and changes its value overtime is called a variable and it is also known as a data item.

Question 10. What type of correlation is present between happiness and death anxiety? [1] (A) Positive (B) Negative (C) Neutral (D) Cannot be determined Answer: Option (B) is correct. Explanation: A person cannot be happy during death anxiety.

Question 11. In how many groups, different commodities have been divided while constructing Wholesale Price Index in India? [3] Answer: In India for the construction of Wholesale Price Index, goods are mainly classified into the following three groups: (i) Primary Articles: Primary articles are major components of WPI, further subdivided into Food Articles and Non-food Articles. (a) Food Articles include items such as Cereals, Paddy, Wheat, Pulses, Vegetables, Fruits, Milk, Eggs, Meat and Fish, etc. (b) Non-food Articles include Oil Seeds, Minerals and Crude Petroleum (ii) Fuel and power: The fuel and power include energy-related products like LPG, Petrol, Diesel, CNG, etc.

Question 12. Calculate mean from the following series: [3]

Question 13. Construct a pie-diagram to represent the cost of construction of a house in Delhi: [4]

Question 14. Find out Median value of the following distribution: [4]

Median value = Size of \(\left(\frac{N}{2}\right)^{\mathrm{th}}\) Items = Size of \(\left(\frac{161}{2}\right)^{\mathrm{th}}\) Items Size of 80.5th item (which lies in 20 – 30 wage group) By Interpolation: Median = \(\mathrm{L}_1+\frac{\frac{N}{2}-C \cdot F}{\mathrm{f}} \times \mathrm{i}\) Where L 1 = 20, C.F = 60 f = 46 i = 10 Thus, put the above value in formula Median = 20 + \(\frac{80.5-60}{46}\) × 10 = 20 + 4.45 = 24.45

Question 15. “An index number is a statistical device for measuring changes in the magnitude of a group of related variables. It represents the general trend of diverging ratios, from which it is calculated.” Elaborate how index number measures the changes in the magnitude of variables. [4] OR What is the importance of Statistics in economic planning? Answer: Index number is a measure of the average change in a group of related variables over two different situations. It helps us to find out percentage change in the values of different variables over time with references to some base year which happens to be the year of comparison. The comparison may be between like categories such as persons, schools, hospitals etc. The method of index number measure alters from one variable to another related variable. OR These days almost all the countries of the world adopt the method of planning for economic development. Statistics is the most important tool in economic planning. Statistics helps economic planning by collecting data of national resources both human and natural. For drawing a plan of their use, we need the help of Statistics.

Question 16. (a) Draw a frequency polygon of the following distribution of the students obtaining marks in Economics: [3]

Question 17. (a) Calculate mean value from the following data: [3]

• The value of correlation coefficient lies between minus one and plus one. If the value of correlation lies outside this range, it is indicates error in calculation.
• The correlation coefficient remains constant in the same measurement as the two variables.
• It is a statistical concept used to measure how strong a relationship is between two variables.

Section – B

Question 18. Identify the correct pair of items from the following Columns I and II: [1]

Alternatives: (A) A -1 (B) B – 2 (C) C – 3 (D) D – 4 Answer: Option (D) is correct. Explanation: Complementary goods are positively related with each other. Rise in quantity demanded of one good also brings the increment in quantity demanded of paired goods.

Question 19. Which of the following has elastic demand: [1] (A) Matchbox (B) Water (C) Medicine (D) Air conditioners Answer: Option (D) is correct. Explanation: Air conditioners are luxury goods, so the demand is elastic.

Question 20. A form of market in which “sellers become price taker instead of price maker” firm. Identify the above form of market: [1] (A) Perfectly competitive market (B) Monopoly market (C) Monopolistic form of market (D) Oligopoly market Answer: Option (A) is correct. Explanation: Sellers become price taker in perfectiy competitive markets because free play of market forces determines the price of commodity in this form of market.

Question 21. Total utility is …………… at the point of satiety. [1] (A) Minimum (B) Maximum (C) Zero (D) None of these Answer: Option (B) is correct. Explanation: At the point of satiety, total utility is maximum beyond which it starts decreasing.

Question 22. Identify the stage of production from given circumstances according to the law of variable proportion. [1] “Average production continues to decrease, total production starts decreasing and marginal product become negative” Alternatives (A) First stage (B) Second stage (C) Third stage (D) None of these Answer: Option (C) is correct. Explanation: Given situation refers to the third stage of production under short rim production. According to the law of variable proportion, in the third stage of production, the total product declines and the marginal product becomes negative.

Question 23. There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option: [1] Assertion (A): Demand for salt is inelastic. Reason (R): In case of elastic demand, percentage change in price of a commodity causes relatively less than percentage change in quantity demanded. Alternatives (A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A) (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (C) Assertion (A) is true, but Reason (R) is false. (D) Assertion (A) is false, but Reason (R) is true. Answer: Option (A) is correct Explanation:

• Necessary goods have inelastic demand.
• Price inelastic demand means there is no change in demand even when there is price change.
• Salt has an price inelastic demand as salt is a necessary good because we need salt everyday. Without it food will taste bad.

Question 24. There are two statements given below, marked as Statement (I) and Statement (II). Read the statements and choose the correct option: [1] Statement – I: The society faces a number of difficulties in the production of commodities. Statement – II: The whole society sacrifices for the production process. Alternatives (A) Statement I is true and Statement II is false (B) Statement I is false and Statement II is true (C) Both statements I and II are true (D) Both statements I and II are false Answer: Option (C) is correct. Explanation: Both the given statements are true regarding short run production. Efforts and sacrifices made in the production process are known as real cost or social cost.

Question 25. Law of demand states the ………………. relationship between price and quantity demanded. [1] (A) Direct (B) Inverse (C) Proportional (D) None of the above Answer: Option (B) is correct. Explanation: Law of demand states that when the price of a commodity increases the quantity demanded decreases and vice versa. Thus, it shows the inverse relationship between price and quantity demanded.

Question 27. There are two statements given below, marked as Statement (I) and Statement (II). Read the statements and choose the correct option: [1] Statement – I : Supply function refers to the functional relationship between supply of a commodity and its determining factors. Statement – II: The supply function is used to measure price elasticity demand for goods and services. Alternatives (A) Statement I is true and Statement II is false (B) Statement I is false and Statement II is true (C) Both statements I and II are true (D) Both statements I and II are false Answer: Option (C) is correct. Explanation: The functional relationship between supply of the commodity and its determining factors is called supply function and it is used to measure price elasticity demand for goods and services.

Question 28. (a) Average product increases only when marginal product increases. [3] (b) Total cost can never be constant. Do you agree with the above statements? Justify your answer with valid argument. Answer: (a) False, because AP increases so long as MP is greater than AP, whether MP is rising or falling. (b) True, because TC can be constant only when MC is zero, which is not possible.

Question 29. What are the characteristics of a perfectly competitive market? [3] OR Explain the implications of the feature “homogeneous product” in a perfectly competitive market. Answer: Perfect Competition: This type of market structure refers to the market that consists of a large number of buyers and also a large number of sellers. No individual seller is able to influence the price of an existing product in the market. All sellers in a perfect competition produce homogenous outputs, i.e., the outputs of all the sellers are similar to each other and the products are uniformly priced.

Characteristics of a Perfectly Competitive Market: (i) Large number of buyers and sellers: There exist a large number of buyers and sellers in a perfectly competitive market. The number of sellers is so large that no individual firm owns the control over the market price of a commodity. Due to the large number of sellers in the market, there exists a perfect and free competition.

(ii) Homogenous products: All the firms in a perfectly competitive market produce homogeneous products. This implies that the output of each firm is perfect substitute to others’ output in terms of quantity, quality, colour, size, features, etc. This indicates that the buyers are indifferent to the output of different firms. Due to the homogenous nature of products, existence of uniform price is guaranteed.

(iii) Free exit and entry of firms: In the long-run, there is free entry and exit of firms. However, in the short run some fixed factors obstruct the free entry and exit of firms. This ensures that all the firms in the long-run earn normal profit or zero economic profit that measures the opportunity cost of the firms either to continue production or to shut down.

(iv) Perfect knowledge among buyers and sellers: Both buyers and sellers are fully aware of the market conditions; such as price of a product at different places. The sellers are also aware of the prices at which the buyers are willing to buy the product. The implication of this feature is that if any individual firm is charging higher (or lower) price for a homogeneous product, the buyers will shift their purchase to other firms (or shift their purchase from the firm to other firms selling at lower price).

(v) No transport costs: This feature means that all the firms have equal access to the market. The goods are produced and sold locally. Therefore, there is no cost of transporting the product from one part of the market to other.

(vi) Perfect mobility of factors of production: There exists geographically and occupationally perfect mobility of factors of production. This implies that the factors of production can move from one place to other and can move from one job to another. (Any three) OR Homogeneous products imply that the products are identical in quality, shape, size and colour. So, no producer is in a position to charge a different price for the product it produces. A uniform price prevails in the market. In a perfectly competitive market, commodity is homogeneous (identical). Thus, the buyers find no reason to prefer the product of one seller to the product of another. Hence, the firms are price takers. In a perfectly competitive environment, homogeneous product does not allow a firm any control over its price. Accordingly, firm’s demand curve (under perfect competition) becomes a horizontal straight line.

Question 31. Complete the following table: [4]

OR Giving reasons, state whether the following statements are true or false: [4] (i) Average product will increase only when marginal product increases. (ii) With increase in level of output, average fixed cost goes on falling till it reaches zero. (iii) Under diminishing returns to a factor, total product continues to increase till marginal product reaches zero. (iv) When there are diminishing returns to a factor, total product always increases. Answer:

(ii) False. AFC = TFC/Output. TFC is constant and positive. So with an increase in output AFC will fall but can never be zero.

(iii) True. Under diminishing returns MP falls. TP increases till MP is positive.

(iv) False. This is because in a situation of diminishing returns to a factor marginal product tends to fall. Falling MP implies that total product should be increasing, though at a diminishing rate. TP will increase till MP remains positive.

Question 33. (a) Central problems arise because resources and scarce and have alternate uses and want are unlimited. Explain. (b) Describe the problem of “What to Produce?”. OR (a) Explain the meaning and implications of maximum price ceiling and minimum price ceiling [3] (b) Define Price Ceiling. What is the common purpose for the price ceiling imposed by the government? Explain any one likely consequence of this nature of intervention by the government in the price determination process. m [3] Answer: (a) Central problem of all economies is scarcity. Scarcity forces individuals, firms, governments and societies to make choices. By this, three basic questions arise : (i) What to produce, (ii) How to produce, (iii) For whom to produce. 2 + 1 = 3

(b) This problem involves selection of goods and services to be produced and the quantity to be produced of each selected commodity. Every economy has limited resources and thus, cannot produce all the goods. More of one good or service usually means less of others. For example, production of more sugar is possible only by reducing the production of other goods. Production of more war goods is possil U only by reducing the production of civil goods. So, on the basis of the importance of various goods, an economy has to decide which goods should be produced and in what quantities. This is a problem of allocation of resources among different goods. The problem of ‘What to produce’ has two aspects : (i) What possible commodities to produce : An economy has to decide which consumer goods (rice, wheat, clothes, etc.) and which of the capital goods (machinery, equipment, etc.) are to be produced. In the same way, economy has to make a choice between civil goods (bread, butter, etc.) and war goods (guns, tanks, etc.). (ii) How much to produce : After deciding the goods to be produced, economy has to decide the quantity of each commodity that is selected. It means, it involves a decision regarding the quantity to be produced, of consumer and capital goods, civil and war goods and so on. OR (a) When the government imposes upper limit on the price of a good it is called maximum price ceiling. It is fixed below the equilibrium price. Implication (maximum price ceiling) : It will lead to excess demand. This in turn may lead to black marketing of goods.

When the government imposes lower limit on the price of a good, it is called minimum price ceiling. Implication (minimum price ceiling) : It leads to excess supply. This in turn may lead to illegal selling below the ceiling price as the producers are not able to sell what they desire to sell.

(b) Price Ceiling: Price ceiling means the maximum limit that the government imposes on the price of a commodity. Price ceiling are used by the government to prevent prices from being too high.

The main reason for imposing price ceilings is to protect the interests of the consumers in situations in which they are not able to afford needed commodities. For example – During the recent rise in the prices of pulses.

Consequence: Shortages of the commodity and rationing : In case of price ceiling the quantity actually supplied in the market will shrink; as a result, a large chunk of consumer’s demand will go unsatisfied. To deal with such a situation the government may resort to rationing of the commodity.

Question 34. Read the passage given below and answer the questions that are followed: Production, exchange and consumption of goods and services are among the basic economic activities of life. In the course of these basic economic activities, every society has to face scarcity of resources and it is the scarcity of resources that gives rise to the problem of choice. The scarce resources of an economy have competing usages. In other words, every society has to decide on how to use its scarce resources. Every society must decide on how mu(h of each of the many possible goods and services it will produce. Whether to produce more of food, clothing, housing or to have more of luxury goods. (a) Why does the problem of ‘what to produce’ arise? Explain. [2] (b) Human wants are unlimited in number. They are never ending and they can never be fully satisfied. Justify. [4] Answer: (a) This problem involves selection of goods and services to be produced and the quantity to be produced for each selected commodity. Every economy has limited resources and thus, cannot produce all the goods. More of one good or service usually means less of others.

For example, production of more sugar is possible only by reducing the production of other goods. Production of more war goods is possible only by reducing the production of civil goods. So, on the basis of the importance of various goods, an economy has to decide which goods should be produced and in what quantities. This is a problem of allocation of resources among different goods.

(b) This problem is concerned with the distribution of income in an economy. It is concerned wdth whether to produce goods for high-income groups or low-income groups. The capacity of people to pay for goods depends upon their level of income. Thus, this problem is concerned with distribution of income among factors of production who contribute in the production process. It has two aspects: (i) Personal distribution: It means national income of an econom distributed among different grouj people in the society. (ii) Factorial distribution: It relates to in share of different factors of production as wages for labour, interest for capital for land, etc.

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Home » 11th Class » Class 11 Economics Notes for Consumers Equilibrium and Demand (PDF) – Study Material

Class 11 Economics Notes for Consumers Equilibrium and Demand (PDF) – Study Material

Class 11 Economics Consumers Equilibrium and Demand – Get here the Notes, Question & Practice Paper of Class 11 Economics for topic Consumers Equilibrium and Demand Notes. Consumers Equilibrium and Demand Notes for Class 11 Economics are here. You can download the Consumers Equilibrium and Demand Notes PDF to study all the topics in this chapter. Moreover the class 11 Economics notes include chapter summary, definitions, examples, and key pointers for Consumers Equilibrium and Demand . Thus if you are studying class Economics (अर्थशास्त्र), then the  Consumers Equilibrium and Demand notes  will help you easily understand the topic and ace it.

Class 11 Economics Notes for Consumers Equilibrium and Demand

Consumers Equilibrium and Demand is a critical part in the study of Economics . In India, it is taught in class. Therefore the class 11 Notes for Economics topic Consumers Equilibrium and Demand have been compiled by teachers and field experts. They explain the complete chapter of Consumers Equilibrium and Demand in one-shot . Whether you are studying the topic Consumers Equilibrium and Demand to complete your class syllabus, or for any competitive exam like JEE , NEET , UPSC, you can simply refer these notes to complete the chapter in one-shot!

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Consumers Equilibrium and Demand Notes for Class 11 Economics PDF

The PDF of Consumers Equilibrium and Demand class 11 notes is as follows. You can view the document here and also download it to use it anytime for future reference whenever you want to brush up your concepts of Economics.

Candidates who are ambitious to qualify the Class 11 with good score can check this article for Notes, Study Material, Practice Paper. Above we provided the link to access the Notes , Important Question and Practice Paper of Class 11 Economics for topic Consumers Equilibrium and Demand.

All Topics Class 11 Economics Notes

Chapter wise notes for Economics (अर्थशास्त्र) are given below.

• Collection, Organisation and Presentation of Data
• Consumers Equilibrium and Demand
• Correlation
• Forms Of Market and Price Determination
• Introduction to Index Numbers
• Introductory Microeconomics
• Measures of Central Tendency
• Measures of Dispersion
• Producer Behaviour and Supply
• Statistics for Economics

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NCERT Solutions for Class 11 Economics Consumers Equilibrium and Demand

The Consumers Equilibrium and Demand notes here help you solve the questions and answers . Also, you can complete the class 11 Consumers Equilibrium and Demand worksheet using the same. In addition you will also tackle CBSE Class 11 Economics Important Questions with these class 11 notes .

However if you still need help, then you can use the NCERT Solutions for Class 11 Economics Consumers Equilibrium and Demand to get all the answers. Consumers Equilibrium and Demand solutions contain questions, answers, and steps to solve all questions.

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Consumers Equilibrium and Demand Notes for Class 11 Economics – An Overview

Class 11 Consumers Equilibrium and Demand Notes for All Boards

You can use the class 11 Economics notes of Consumers Equilibrium and Demand for all boards.

The education boards in India for which Consumers Equilibrium and Demand notes are relevant are – CBSE, CISCE, AHSEC, CHSE Odisha, CGBSE, HBSE, HPBOSE, PUE Karnataka, MSBSHSE, PSEB, RBSE, TBSE, UPMSP, UBSE, BIEAP, BSEB, GBSHSE, GSEB, JAC, JKBOSE, KBPE, MBOSE, MBSE, MPBSE, NBSE, DGE TN, TSBIE, COHSEM, WBCHSE .

Therefore you can refer to these notes as CBSE, CISCE, AHSEC, CHSE Odisha, CGBSE, HBSE, HPBOSE, PUE Karnataka, MSBSHSE, PSEB, RBSE, TBSE, UPMSP, UBSE, BIEAP, BSEB, GBSHSE, GSEB, JAC, JKBOSE, KBPE, MBOSE, MBSE, MPBSE, NBSE, DGE TN, TSBIE, COHSEM, WBCHSE notes for class Class 11 / Class / Economics for the topic Consumers Equilibrium and Demand.

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• Exceptions to the Law of Demand

We all know that supply and demand factors influence the market conditions of an economy and determine the prices of goods and services . In a competitive market, the price conditions of a product or service will keep varying until the demand equals the supply thereby creating an equilibrium . Let us look at some exceptions to this law of demand like Giffen goods, necessary goods, etc.

Law of Demand

Now the law of demand states that all conditions being equal, as the price of a product increases, the demand for that product will decrease. Consequently, as the price of a product decreases, the demand for that product will increase. For instance, a consumer may buy two dozens of bananas if the price is Rs.50.

However, if the price increases to Rs.70, then the same consumer may restrict the purchase to one dozen. Hence, the demand for the bananas, in this case, was reduced by one dozen. Therefore, the law of demand defines an inverse relationship between the price and quantity factors of a product.

The graph shows the demand curve shifts from D1 to D2, thereby demonstrating the inverse relationship between the price of a product and the quantity demanded.

Browse more Topics under Theory Of Demand

• Meaning And Determinants Of Demand
• Law Of Demand And Elasticity Of Demand
• Elasticity of Demand
• Movement along the Demand Curve and Shift of the Demand Curve
• Price Elasticity of Demand
• Income Elasticity of Demand
• Cross Elasticity of Demand
• Demand Forecasting
• Methods of Demand Forecasting

Note that the law of demand holds true in most cases. The price keeps fluctuating until an equilibrium is created. However, there are some exceptions to the law of demand. These include the Giffen goods, Veblen goods, possible price changes, and essential goods. Let us discuss these exceptions in detail.

Giffen Goods

Giffen Goods is a concept that was introduced by Sir Robert Giffen. These goods are goods that are inferior in comparison to luxury goods. However, the unique characteristic of Giffen goods is that as its price increases, the demand also increases. And this feature is what makes it an exception to the law of demand.

The Irish Potato Famine is a classic example of the Giffen goods concept. Potato is a staple in the Irish diet. During the potato famine, when the price of potatoes increased, people spent less on luxury foods such as meat and bought more potatoes to stick to their diet. So as the price of potatoes increased, so did the demand, which is a complete reversal of the law of demand.

Veblen Goods

The second exception to the law of demand is the concept of Veblen goods. Veblen Goods is a concept that is named after the economist Thorstein Veblen, who introduced the theory of “conspicuous consumption “. According to Veblen, there are certain goods that become more valuable as their price increases. If a product is expensive, then its value and utility are perceived to be more, and hence the demand for that product increases.

And this happens mostly with precious metals and stones such as gold and diamonds and luxury cars such as Rolls-Royce. As the price of these goods increases, their demand also increases because these products then become a status symbol.

The expectation of Price Change

In addition to Giffen and Veblen goods, another exception to the law of demand is the expectation of price change. There are times when the price of a product increases and market conditions are such that the product may get more expensive. In such cases, consumers may buy more of these products before the price increases any further. Consequently, when the price drops or may be expected to drop further, consumers might postpone the purchase to avail the benefits of a lower price.

For instance, in recent times, the price of onions had increased to quite an extent. Consumers started buying and storing more onions fearing further price rise, which resulted in increased demand.

There are also times when consumers may buy and store commodities due to a fear of shortage. Therefore, even if the price of a product increases, its associated demand may also increase as the product may be taken off the shelf or it might cease to exist in the market.

Necessary Goods and Services

Another exception to the law of demand is necessary or basic goods. People will continue to buy necessities such as medicines or basic staples such as sugar or salt even if the price increases. The prices of these products do not affect their associated demand.

Change in Income

Sometimes the demand for a product may change according to the change in income. If a household’s income increases, they may purchase more products irrespective of the increase in their price, thereby increasing the demand for the product. Similarly, they might postpone buying a product even if its price reduces if their income has reduced. Hence, change in a consumer’s income pattern may also be an exception to the law of demand.

Solved Example for You

Q: Which of the following is a Veblen Good?

• None of the above

Ans: The correct answer is C. A luxury car is a Veblen good. They are expensive products whose value increases if the price is higher. More expensive the product, the higher its value.

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Demand, market demand, determinants of demand, demand schedule, demand curve and its slope, movement along and shifts in the demand curve.

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Commerce Aspirant » Economics Class 11 » Determinants of Demand in Economics Class 11 Notes

Determinants of Demand in Economics Class 11 Notes

Determinants of Demand 

Demand for a commodity increases or decreases due to a number of factors. The various factors affecting demand are :-

1. Price of the Given commodity :

It is the most important factor affecting demand for the given commodity. Generally there exists an inverse relationship between price and quantity demanded. It means as price increases, quantity demanded falls due to decrease in the satisfaction level of consumers.

For example :- If the price of the given commodity (say tea) increases its quantity falls as satisfaction derived from tea will fall due to rise in its price.

The following determinants are termed as ‘other factors’ or factors ‘other than price’

2. Price of related goods:-

Demand for the given commodity is also affected by the change in prices of the related goods. Related goods are of two types :-

(i) Substitute goods:- Substitute goods are those goods which can be used in place of one another for satisfaction of a particular want, like tea and coffee. An increase in the price of substitute leads to an increase in the demand for given commodity and vice – versa. For example : – If price of a substitute good (say, coffee) increases then demand for given commodity (say, tea) will rise as tea will become relatively cheaper in comparison to coffee. So, demand for a given commodity is directly affected by change in price of substitute goods.

(ii) Complementary goods:- Complementary goods are those goods which are used together to satisfy a particular want, like tea and sugar, An increase in the price of complementary good leads to a decrease in the demand for given commodity and vice – versa. For example : – if the price of a complementary good (say, sugar) increases, then demand for given commodity (say, tea) will fall as it will be relatively costlier to use both the goods together. So, demand for a given commodity is inversely affected by change in price of complementary goods.

Example of substitute goods:-

• Tea and coffee
• Coke and Pepsi
• Pen and Pencil
• Ink pen and ball pen
• Rice and wheat

Example of complementary goods:-

• Tea and Sugar
• Pen and ink
• Car and Petrol
• Bread and Butter
• Pen and Refill
• Brick and cement

3.  Income of the consumer:-

Demand for a commodity is also affected by income of the consumer. However, the effect of change in income on demand depends on the nature of commodity under consideration.

• If the given commodity is a normal good, then an increase in income lads to rise in its demand, while a decrease in income reduces the demand.
• If the given commodity is an inferior good, then an increase in income reduces the demand while a decrease in income leads to rise in demand.

Example :- Suppose income of a consumer increases. As a result, the consumer reduces consumption of toned milk and increases consumption of full cream milk. In this case ‘Toned milk’ is an inferior good for the consumer and ‘Full cream milk’ is a normal good.

4. Tastes and Preferences : –

Tastes and preferences of the consumer directly influence the demand for a commodity. They include changes in fashion, customs, habits etc. If a commodity is in fashion or is preferred by the consumers, then demand for such a commodity rises. On the other hand, demand for a commodity falls, if the consumers have no taste for that commodity.

5. Expectation of change in the price in future : –

If the price of a certain commodity is respected to increase in near future, then people will buy more of that commodity than what they normally buy. There exists a direct relationship between expectation of change in the prices in future and change in demand in the current period

• Change in quantity demanded : – Whenever demand for the given commodity changes due to change in its own price, then such change in demand is known as “ Change in Quantity Demand”. For example, if demand for Pepsi changes due to. Change in its own price, then such change in demand is known as “Change in Quantity Demanded”. For example, if demand for Pepsi changes due to change in its own price, then such change in demand for Pepsi is known as change in quantity demanded.
• Change in Demand : – Whenever demand for the given commodity changes due to factors other than price, then such change in demand is known as “Change in demand”. For example : – If demand for Pepsi changes due to change in price of Coke or due to change in income or due to a change in taste, then such change in demand for Pepsi is known as change in demand.

Unit 5: Consumer’s Equilibrium and Demand

• Concept of Utility in Economics
• Measurement of Utility in Economics
• Total Utility and Marginal Utility
• Law of Diminishing Marginal Utility
• Conditions of Consumer’s Equilibrium
• Theory of Demand
• What is Demand in Economics
• Demand Characteristics
• Determinants of demand
• Determinants of Market Demand
• Demand Function In Economics
• Demand Schedule | Individual demand schedule | Market demand schedule
• Economics Class 11 Notes
• Accountancy Class 11 Notes
• Economics Class 11 MCQs

Business Studies Class 11 MCQ

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• Exponents and Powers Class 7 Case Study Questions Maths Chapter 11

Last Updated on September 7, 2024 by XAM CONTENT

Hello students, we are providing case study questions for class 7 maths. Case study questions are the new question format that is introduced in CBSE board. The resources for case study questions are very less. So, to help students we have created chapterwise case study questions for class 7 maths. In this article, you will find case study questions for CBSE Class 7 Maths Chapter 11 Exponents and Powers. It is a part of Case Study Questions for CBSE Class 7 Maths Series.

Table of Contents

Case Study Questions on Exponents and Powers

Bacteria can divide every 15 minutes. So one bacterium can multiply to 2 in 30 minutes, 4 in 45 minutes and so on.

Q. 1. How many bacteria will be there in 4 hours. (a) 65536 (b) 327680 (c) 131072 (d) 262144

Ans. Option (a) is correct. Explanation: Bacteria multiplies every 15 minutes So, it multiplies in every 4 hours $(4 \times 60) 240$ minutes

$$ =\frac{240}{15}=16 \text { times } $$

So, number of bacteria in 4 hours

$$ \begin{aligned} & =2^{16} \\ & =2 \times 2 \times 2….. \\ & =65536 \end{aligned} $$

Q. 2. How many bacteria will be there in 1 hour? (a) 2 2 (b) 2 4 (c) 2 6 (d) 2 8

Ans. Option (b) is correct. Explanation: Bacteria multiplies every 15 minutes So, it multiplies in 1 hour $(1 \times 60) 60$ minutes

$$ =\frac{60}{15}=4 \text { times } $$

So, number of bacteria in 1 hour

$$ =2^4 \text { or } 16 $$

Q. 3. Write 655360000 in scientific notation. (a) 6.5 × 10 8 (b) 6.55 × 10 7 (c) 6.553 × 10 6 (d) 6.5536 × 10 5

Ans. Option (a) is correct. Explanation: First factor between 1 and 10 is 6.5 and second factor 10 is raised to the power 8 as decimal is shifted 8 places.

Q. 4. Write 7.9 × 10 6 in standard form

Sol. 7.9 × 10 6 = 7.9 × 1000000 = 7900000

Q. 5. Simplify: (–5) 3 ÷ (–5) 6

$$ \begin{aligned} (-5)^3 \div(-5)^6 & =(-5)^{3-6} \\ & =(-5)^{-3} \\ & =\left(\frac{1}{-5}\right)^3=\frac{-1}{125} \end{aligned} $$

• Visualizing Solid Shapes Class 7 Case Study Questions Maths Chapter 13
• Symmetry Class 7 Case Study Questions Maths Chapter 12
• Algebraic Expressions Class 7 Case Study Questions Maths Chapter 10
• Perimeter and Area Class 7 Case Study Questions Maths Chapter 9
• Rational Numbers Class 7 Case Study Questions Maths Chapter 8
• Comparing Quantities Class 7 Case Study Questions Maths Chapter 7
• Triangle and its Properties Class 7 Case Study Questions Maths Chapter 6
• Lines and Angles Class 7 Case Study Questions Maths Chapter 5
• Simple Equations Class 7 Case Study Questions Maths Chapter 4
• Data Handling Class 7 Case Study Questions Maths Chapter 3

Fractions and Decimals Class 7 Case Study Questions Maths Chapter 2

Integers class 7 case study questions maths chapter 1, topics from which case study questions may be asked.

• Laws of exponents
• Decimal number system
• Expressing large numbers in the standard form

A number multiplied by itself many numbers of times can be expressed in the exponential notation as 2 × 2 × 2 × 2 × 2 = 2 5 ; where 2 is the base and 5 is the exponent index or power

Case study questions from the above given topic may be asked.

Exponents are also called Powers or Indices . The exponent says how many times to use the number in a multiplication .

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Frequently Asked Questions (FAQs) on Exponents and Powers Case Study

Q1: what are exponents.

A1: Exponents represent repeated multiplication of a base number.

Q2: What is the difference between base and exponent?

A2: In the expression a n , a is the base, which is the number being multiplied, and n is the exponent, which indicates how many times the base is multiplied by itself.

Q3: What is a power?

A3: Power refers to the entire expression involving a base and an exponent.

Q4: What happens when an exponent is zero?

A4: Any non-zero number raised to the power of zero is equal to 1.

Q5: What is a negative exponent?

A5: A negative exponent represents the reciprocal of the base raised to the positive exponent.

Q6: How do you express large numbers using exponents?

A6: Large numbers can be expressed using exponents by converting them into powers of 10.

Q7: H ow do you divide numbers with the same base using exponents?

A7: When dividing numbers with the same base, subtract the exponents.

Q10: Are there any online resources or tools available for practicing Exponents and Powers case study questions?

A10: We provide case study questions for CBSE Class 7 Maths on our  website . Students can visit the website and practice sufficient case study questions and prepare for their exams. If you need more case study questions, then you can visit Physics Gurukul website. they are having a large collection of case study questions for all classes.

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