Sample Question Paper - Sessional Exam

MODEL QUESTION PAPER B.A., LL.B. (Hons.) / B.Com., LL.B (Hons.) Semester-I 2BL114, FUNDAMENTALS OF ECONOMIC ANALYSIS
Time: 1:30 hour				Max. Marks :40
Instructions:-

i.      Attempt all Questions.

ii.     Figure at the right indicated maximum marks for each question.

iii.   Answer to the point. Avoid supplementing quality with quantity.

Q:1	Answer to the point with short explanations: (a)  The Law of Demand assumes that goods under consideration are ‘normal’. Discuss. [Hint: It is not Necessity, comfort or luxury] (b)  Give two examples of supplementary and complementary goods. (c)  Show shift in equilibrium due to changes in demand using a diagram. (d)  Create a demand and supply schedule and show equilibrium in a diagram. (e)  If the willingness to pay is Rs. 100 and market price is Rs. 60, what is the amount of Consumer’s Surplus?	(20)
Q:2	Explain universal demand function as a concept. Draw a demand function for the following goods: 1.    Restaurant    2. Television Set    3. Travel services	(10)
Q:3	What is Producer’s Surplus? Analyze price changes and the impact on producer’s surplus with the help of a diagram. OR	(10)
Q:3	Discuss Price Effect, Income Effect and Substitution Effect as an explanation to the downward sloping demand curve.	(10)