1. What is elasticity of demand? Describe the factors which determine elasticity of demand.
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Refer unit-I answer to question No.7.
2. Draw an isoquant and explain its properties. Identify the economic region of production with the help of isoquant curve.
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Discuss the laws of returns to scale.
3. Mention the objectives of a business firm. Analyse the equilibrium of a business firm under perfect competition in the short period with the help of suitable diagram.
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What is monopoly market? How does a monopolist determine the price of his commodity under condition of price discrimination? Illustrate your answer with suitable diagram.
4. Critically examine the marginal productivity theory of distribution.
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What is rent? Explain the Ricardian theory of rent.
5. What do you mean by interest? Describe the liquidity preference theory of interest propounded by Keynes.
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