Government brings down income tax rates. What is likely to be the impact of this move on the market of a product which most of the consumers treat as a normal product, Explain. Use diagram.

What is likely to be the impact of efforts towards reducing unemployment on the production potential of the economy? Explain.

Explain what can be done to bring down the consumption of a product harmful for health, but only through the market mechanism. Use diagram.

A consumer at present consumes a commodity which he finds inferior as his present income does not allow him to move to his demand for normal good. If he shifts to a higher income group what changes will take place? Explain using suitable diagram.

What is meant by a product being perfectly homogeneous? What is its implication for the price charge by producers in the market? OR In a perfectly competitive market, the buyers treat products of all the firms as homogeneous. Explain the significance of this feature.

Equilibrium market price of a product, in a competitive market, is too high for an average consumer. Suggest what can be done to bring down the equilibrium price. Explain. Use diagram.

Detine 'Market supply'. What is the effect on the supply of a good when Government imposes a tax on the production of that good? Explain.