| Orr attr e. Sr. No. of Question Paper: 2309 G Unique Paper Code : 2274001003 Name of the Paper Principles of Microeconomics I Name of the Course Generic Elective — Economics Semester I Duration : 3 Hours Maximum Marks : 90 Instructions for Candidates Write your Roll No. on the top immediately on receipt of this question paper. 2. Attempt any five questions. 3. Answers may be written either in English or Hindi; but the same medium should be used throughout the paper. 1 mA -8 & faa Ham feo am Pita er aT oreprratn: Frater | Far-O.2309 2 2 Refi dia ws ser Sie S30 SOW eR Sa ar RS fat cee Ta fe, ART wi set ar a Ge A BT RT 1 1. Answer the following questions : (a) Explain the concepts of producer surplus and consumer surplus. Consider a market for apples. Suppose the supply of apples rises. What happens to consumer and producer surplus at the new equilibrium in the market for apples? 9) () What is Price Ceiling? Does a price ceiling fixed by the government-always change the market outcome? Give reasons for your answer. (9) Refiee wet sar aie: (=) semee afte si srt state at saeconsit at wah ta & fare ea ara fae et aT are Fe at omg ae ont 31 aa Fa F ay QE AC gwhen sh seree fide ar am Bar 27 2309 3 (@) apa Ger a 8? en wea are Freer yet de wim aa SAT aah 27 HHT Ta SCT oud) 2. Answer the following questions (a) Rahul is consuming two goods X and Y. His income is Rs. 100. Price of Good X is Rs. 10 and the price of Good Y is Rs. 10. (9) (i) Given the above information, draw the budget line for Rahul (ii) Suppose the price of Good X decreases to Rs. 5. How will the budget line for Rahul change? (iii) Instead of a decrease in the price of Good X, Rahul's income increases to Rs. 200. How will the budget line for Rahul change, in comparison to Part (i)? P.T.O.4 7 os Sm indifference curve? Explain the Properties of indifference curves. * Gai X sk Yo onie x ot aS We St Se X aes wo wh 2 ak ay 2309 3 3. Answer the following questions = (2) Whenever interest rates on savings increase. households tend to save more. Is this statement truc or false? Explain with the help of income and substitution effects. 2 (®) It is observed that at the existing equilibrium in the market, demand is highly inelastic while the supply is highly elastic. If the buyers have to pay a tax of Rs. T for cach unit they buy, who will bear the higher burden of tax: buyer or seller? Explain why. ° faite yet 3 ne ORR: (=) we O we © Gs RS tod RE SRS ee Se wR how ee wt tog eq? sc we Weee wee 9 area 2 ee? PTO.6 6 Ser er 8 FR eH she gee, air satire SRE eR omyfF ocaften Stae #1 ae wert Rete sare eRe eT ek a ae Sat A, . “afte ata ate get atm: eitteen a ar? ig sin'y 1 Possibility Curve (PPC)? the usual assumptions, PPC is if the opportunity cost of od X is constant? (9) curve if 2309 i) Prater wet & sae ae: (a) Senet ore a (Maat) sar 3? ene fe aT aronsti @ awa, Gta ae at ste (ae fg A ae xaaa) Fa gat gw 21 ae wy Y A saa ara Faq X Fae H flee # ah PPC aT AHR FAT en? (a) a a agg % at serie oat wr oa ai? (i) et wfeearet Gi) wie (ii) ew ae air ae B arash &, gett sis a ae 5. Answer the following questions Ww (a) Differentiate between economies of scale and economies of scope. (9) P.T.OC$ 38 2309 9 and i ‘explain the concept of Lay of In this context, differentiate a returns toa factor, constant tie factor and decreasi 4 . ing returns to aaa : (9) (b) Define perfect competition. What are its main ame characteristics? 0) (em) ee sere A aera & FHA A A TE TAT ste saafitta aera S Ge sat SR eS eT, sain a ak aerator S Ga gee TE Tt (@) at eran a after ath eet eT Fhe aT sd 7. Answer the following questions = (a) Differentiate between shut down point and exit point of a firm in a perfectly competitive market. (9) (&) Consider a firm in a perfectly competitive market for sugar. The market price for sugar is Rs. 24 per kg. The marginal cost function for this firm is Bere ysnta--3 > 70.Golculatethe quantity of sugar that this firm will be selling in the market at P.T.O.10 ibrium, What will be the total reye,, p He inal revenue and average revenue foy 1 he : (9) ser ffir: fe hs ¥ 2% for wR me wise fay se i wh arom Wf wer we ue fare ond) ret 24 ey wf fess #1 ca ... —— 2309 i increasing returns 10 scale or decreasing returns to scale or constant returns to scale. OY=LK i) ¥ = JK 7) (b) In continuation of Part (a), if suppose the firs is producing 100 units of output Write the equation of isoquant for the two production functions given in Part (4). Y freatantirs wart ear Fife - (a) ph ent rae Hoan (1) oe fm (K) 1 7PRH vere years (') an sees or ale ms A Pre ety Prefers seaven vw ate 8, oe Salts at fie een A at Am TA A a HA feed Me oe Pree McA se TE TPS () Y= LK (iy Y= JK PTO.2309. 12 (@) wrt (a) at Peace #, af art a fe wT 100 gare wr Senet ae Gt 1 HTT (a) # fe ae a seer are a fer ayene ar wiitener feral (3000)