CBSE Class 12 Economics 2014 Previous Year Question Paper
This CBSE Class 12 Economics Previous Year Question Paper from 2014 focuses on the Concept of Price Elasticity of Demand & Its Determinants. It includes questions carrying 1 mark and 3 marks, testing the understanding of concepts like inelastic demand, price elasticity of demand, and its calculation using the expenditure approach. The paper features questions that require students to define terms, explain reasons for inelastic demand, and solve numerical problems involving changes in price, quantity demanded, and total expenditure. Solving this board question paper helps students prepare for their final examinations by familiarizing them with the exam pattern and question types.
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Quick info
| Board | CBSE |
|---|---|
| Class | 12 |
| Subject | Economics |
| Session | 2014 |
| Language | English |
| Type | Previous Year Question Paper |
| Exam type | Board Exam |
Paper pattern
The paper includes 1-mark and 3-mark questions testing concepts and calculations related to Price Elasticity of Demand.
Topics covered
Paper topics
- Price Elasticity of Demand
- Inelastic Demand
- Expenditure Approach
- Determinants of Price Elasticity of Demand
Important topics
- Price Elasticity of Demand
- Expenditure Approach
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Question paper text
Concept of Price Elasticity of Demand & Its Determinants
1 Mark Questions
- Give the meaning of inelastic demand.(All India 2014) (Delhi 2009)
or When is demand said to be price inelastic?(HOTS; All India; Delhi 2013,2009) or
When is the demand for a good said to be inelastic?
Ans. When percentage change in quantity demanded is less than percentage change in price, the demand is said to be inelastic.
2. Give the meaning of Price Elasticity of (All India 2011)
Ans. Price Elasticity of Demand is the responsiveness of quantity demanded to change in price.
3. Why is demand for water inelastic? (Hots; Delhi 2010)
Ans. Demand for water is inelastic because change in price does not affect the demand for water as water is essential for life.
3 Marks Questions
4.8 units of a good are demanded at a price of? 7 per unit. Price Elasticity of Demand is (-) 1. How many units will be demanded if the price rises to? 8 per unit? Use expenditure approach of Price Elasticity of Demand to answer this question. (Delhi 2011)
Ans.
Price (₹) Quantity (units) Total Expenditure <₹)
8 56
8 56
Given
<math>E_d = -1</math> In this case, when Elasticity of Demand is (-) 1, Total Expenditure will remain constant.
Total Expenditure (TE) = <math>7 \times 8 = ₹56</math>
: TE does not change.
∴ When price is ₹ 8 per unit
Quantity demanded = <math>56 \div 8 = 7</math> units
- A consumer buys 10 units of a good at a price of? 6 per unit. Price Elasticity of
Demand is (-) 1. At what price will he buy 12 units? Use expenditure approach of Price Elasticity of Demand to answer this question (Delhi 2011)
Ans.
Price ₹ Quantity (units) Total Expenditure (₹)
6 10 60
5 12 60
Given <math>E_d = (-) 1</math>.
In this case when Elasticity of Demand is (-) 1, Total Expenditure will remain constant.
Total Expenditure (TE) = <math>10 \times 6 = ₹60</math>
- TE does not change.
:. When quantity is 12 units
Price = <math>60 \div 12 = ₹5</math> per unit
- When price of a good is 13 per unit, the consumer buys 11 units of that good.
When price rises to 15 per unit, the consumer continues to buy 11 units. Calculate Price Elasticity of Demand. (All India 2011)
Ans.
Given, <math>P = ₹13; P_1 = ₹15,</math>
<math>\Delta P = P_1 - P = 15 - 13 = ₹2</math>
<math>Q = 11</math>units, <math>Q_1 = 11</math>units,
<math>\Delta Q = Q_1 - Q = 11 - 11 = 0</math>
<math>E_d = (-)\frac{P}{Q} \times \frac{\Delta Q}{\Delta P} = (-)\frac{13}{11} \times \frac{0}{2} = 0</math>
:: <math>E_d = 0</math> or demand is perfectly inelastic
- When price of a good is 12 per unit, the consumer buys 24 units of that good.
When price rises to 114 per unit, the consumer buys 20 units. Calculate Price Elasticity of Demand. (All India 2011)
Ans.
Given,
<math>P = \sqrt[3]{12}</math>; <math>P_1 = \sqrt[3]{14}</math>; <math>\Delta P = P_1 - P = 14 - 12 = \sqrt[3]{2}</math>
<math>Q = 24</math> units; <math>Q_1 = 20</math> units
<math>\Delta Q = Q_1 - Q = 20 - 24 = (-) 4 \text{ units}</math>
Frequently asked questions
What is this document?
This is a CBSE Class 12 Economics Previous Year Question Paper from 2014, designed for board exam practice.
What topics are covered in this paper?
The paper primarily covers the Concept of Price Elasticity of Demand and its Determinants, including inelastic demand and the expenditure approach.
How can solving this paper help students?
Solving this previous year question paper helps students understand the exam pattern, question types, and improve their score in the CBSE Class 12 Economics board examination.
What is the format of the questions?
The paper includes both definitional questions for 1 mark and numerical problems requiring calculations for 3 marks.
Is this paper useful for exam preparation?
Yes, practicing with this 2014 CBSE Economics board question paper is highly beneficial for students preparing for their final exams.
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