FREQUENTLY ASKED QUESTIONS – CBSE BOARD EXAMINATION
One Mark Questions (1M)
- Define the law of supply.
- Define market supply.
- What do you understand by supply curve of a firm?
- What do you mean by elasticity of supply?
- Define supply schedule.
- Define revenue of a firm? OR give meaning of revenue?
- Define Marginal Revenue?
- What is Average revenue?
- When will the marginal revenue become negative?
- What happens to total revenue when Marginal revenue is zero?
- In which market the Average revenue is equal to marginal Revenue?
Three Marks Questions (3M)
- Give reasons for the rightward shift in supply curve?
- Give reasons for the leftward shift in supply curve?
- If the price of the commodity falls by 10 % and consequently the quantity supply decreases by 20 % what will be elasticity of supply?
Four Marks Questions (4 M)
- Briefly explain the geometric method of measuring price elasticity of supply?
- Distinguish between change in supply and change in quantity supplied?
- Explain the movement along the supply curve?
Three OR Four Marks Questions (3M/4M)
1) What changes will take place in marginal Revenue when:
a) TR increase at an increasing rate?
b) TR increases at a diminishing rate?
2) Complete the following table:
Six Marks Questions (6 M)
- Explain the determinants of supply?
- Explain the relationship between Total Revenue and marginal Revenue using a Schedule and diagram?