Economics Past Questions and Answers

The demand and supply equations for a commodity are given respectively as \(\mathrm{D}=20-\frac{1}{2} \mathrm{P}, \mathrm{S}^2=8-\frac{1}{4} \mathrm{P}\)<br/>Recalling that at equilibrium, \(D=S\), the equilibrium price (P) and quantity \((Q)\) can be obtained as

The meaning of scale of preference is

For a free commodity, a rational consumer will continuously increase his consumption until:

The concept of economic efficiency basically implies:

A rational consumer will adjust his spending pattern so that: