Correct Answer: A. 2

Correct Answer: B. A price index

Correct Answer: D. rise in the cost of production.

Explanation

Cost push inflation is inflation caused by an increase in prices of inputs like labour, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods.

Explanation

(a) Elasticity of supply is the degree of responsiveness of the quantity supplied to price change.

OR Elasticity of supply = \(\frac{% change in quantity supplied}{% change in price}\)

(b) (i) Supply is described as elastic when the co-efficient of elasticity is greater than one. Or when the % change in quantity supplied is greater than % change in price.

(ii) Supply is described as inelastic when the co-efficient of elasticity is less than one. When the % change in quantity supplied is less than % change in price.

(c) (i)How quickly the factors of production can be switched from one type of production to another,

(ii) The time required to produce a commodity.

(iii) The availability of factors of production.

(iv) Perishable and bulky goods tend to be relatively inelastic in supply.

(v) The behaviour of cost of production as output changes.

(vi) Ease of entry or exit of producers.

(viii) Change in Technology

(ix) Nature of the product - industrial oragricultural product

Correct Answer: B. products are relatively more expensive to transport than the major raw materials

Correct Answer: B. MR = MC = AR = AC

Correct Answer: B) Average fixed cost equals average variable cost minus average total cost

Explanation

This question is asking which of the given options is not correct. The options are related to the concepts of average variable cost, average fixed cost, and average total cost.

Average variable cost (AVC) is the cost of producing each unit of output which varies with the level of output. Average fixed cost (AFC) is the fixed cost per unit of output, which decreases as the level of output increases. Average total cost (ATC) is the total cost per unit of output, which is the sum of average variable cost and average fixed cost.

Option A states that average variable cost equals average total cost minus average fixed cost. This is correct because ATC is the sum of AVC and AFC, so if we subtract AFC from ATC, we get AVC.

Option B states that average fixed cost equals average variable cost minus average total cost. This is not correct because AFC and AVC cannot be subtracted from ATC to get each other.

Option C states that average total cost equals average variable cost plus average fixed cost. This is correct because ATC is the sum of AVC and AFC.

Option D states that average total cost minus average variable cost equals average fixed cost. This is not correct because AFC and AVC cannot be subtracted from ATC to get each other.

Therefore, the correct answer is Option B.

Correct Answer: B. law of diminishing returns

Correct Answer: A. Agricultural

Correct Answer: A. NEEDS