## EQUILIBRIUM PRICE

I.CHOOSE THE CORRECT ANSWER:

1. Equilibrium price equalizes demand and supply.

2. Supply is constant in very short period.

II.WRITE A SHORT NOTE:

1. Equilibrium price.

There is only one price at which the preferences of seller and buyer meet together.

At a particular price, the quantity demanded and a quantity supplied will become equal.

At this price quantity bought and quantity sold will be equal.

2. Short periods

During the short period, supply can be altered to some extent only.

Supply cannot be fully altered to the demand changes.

Raising demand increases the price lightly and a falling demand decreases the price slightly.

IV.WRITE IN A PARAGRAPH:

1. How is the equilibrium price determine?

• It is clear from the table given below that demand decreases and supply increases when the price rises.
• At this price the quantity bought (demand) and the quantity sold ( supply) will be equal.
• This price equalizes the demand and supply
• When the price of mangoes is Rs.20 per kg, demand is 5 kg and the supply is 1 kg.
• When the price raises to Rs 40, 60, 80, 100 and the demand decreases to 4, 3, 2, 1 kg and the supply raises to 2, 3, 4, 5 kg.
• At a particular price the demand and supply are equal that is 3 kg.
• This price is called equilibrium price and the quantity is called equilibrium quantity.

## TAMILNADU – MANUFACTURING INDUSTRIES

I.CHOOSE THE CORRECT ANSWER:

1. Tamilnadu newsprint paper limited (TNPL) is public sector industry in Tamilnadu.

2.The by-product Bagasse is used as a raw material for paper industry.

3.SPIC is the largest producer of fertilizers in India.

4.Cottage industry is one where in very little investment is involved.

5.Kancheepuram silk in its quality and is known for its traditional value all over the world.

II.MATCH THE FOLLOWING:

IV.ANSWER IN BRIEF:

1. How are industries classified?

Industries are classified on the basis of

a) Raw materials

b) Ownership

c) Capital involved and

d) Product

2. What are the factors determining the location of industries in Tamil Nadu?

1. Raw materials
2. Energy
3. Capital
4. Labour
5. Transport and
6. Market

3. Name the products and by-products of sugar industry?

Jaggery, kandasari and sugar are the products from the sugar industry.

4. List down the raw materials for paper industry?

The by-product bagasse is used as a raw material for paper industry.

5. What do you mean by consumer goods?

Consumer goods are those goods, which reach the consumers straight from the production unit. All perishable goods like food products and dairy products are examples of consumer goods.

6. Write a short note on Cottage Industry?

Cottage Industry is one wherein very little investment is involved. Locally available raw materials are used to produce the handicrafts. Volume of production and cost of production are low.

7. Give reasons for the widespread distribution of textile industry in Tamil Nadu.

Tropical Climate, availability of raw materials, demand for cotton in market, power supply from numerous power projects and abundant cheap labour are the reasons for the widespread distribution of textile industry in Tamil Nadu.

8. Distinguish between factory and industry.

FACTORY:

Single manufacturing unit is termed as factory.

INDUSTRY:

Multiple units of same kind which are spread over a large area are termed as industry.

9. Distinguish between agro based industry and mineral based industry.

AGRO BASED INDUSTRY:

Industry using agricultural products for manufacturing is termed as agro based industry.

MINERAL BASED INDUSTRY:

Industry using mineral for producing is called mineral based industry.

10.Distinguish between vegetable tanning and mineral tanning.

VEGETABLE TANNING:

If tanning is done by vegetative matter is known as vegetable tanning process.

MINERAL TANNING:

If the tanning is done with chemicals like chromium and fatty matter, it is known as mineral tanning process.

IV.ANSWER IN PARAGRAPH:

1. Describe the classification of industry based on ownership.

Private industry is one which owned by individual or a group of people. Ex: TVS Motors.

All government owned industry come under the public sector

Ex: TNPL

Co-operative sector is one which owned by a group of cooperative members who supply the raw materials for that industries and factories in Tamil Nadu.

When an industry is functioning under the partnership of two organizations it is said to be Joint Sector.

2. Give an account for the distribution of textile industry in Tamil Nadu.

Tamil Nadu contributes nearly 25% of India’s share in the export of cotton and fabrics.

Tropical climate, availability of raw materials, demand of cotton in market, power supply from numerous power projects and abundance cheap laborers are favorable factors of widespread distribution of textile industry in Tamil Nadu. Coimbatore, pollachi, Thiruppur, Karamadai, Erode etc. are the important centres for textile industry.

Maximum units are concentrated in and around Coimbatore region. For this reason it is known as Manchester of south India.

3. Write about the paper industry in Tamil Nadu.

Coimbatore, Vellore, Kanchipuram, Pugalur etc. are centers of paper industry in Tamil Nadu.

Tamil Nadu Newsprint and Paper Limited(TNPL) was set up with aid of World Bank in 1979 in Kakithapuram near Pugalur in Karur district. It is largest producers of bagasse based paper in the world with the annual consumption of bagasse to one million tonnes per annum.

It produce paper Newsprint, papers for telephone directory, computers, offset printing papers are also produced by TNPL.

4. Give an account of sugar industry in Tamil Nadu.

Tamil Nadu produces about 10% of total sugar in India.

Suitable climate and soil for high yielding varieties continuous irrigation facilities goods transport marketing facilities and regularized and co-operative sector are favorable factors of widespread sugar mills in the state.

A majority of distribution of sugar units in Tamil Nadu functioning under the co-operative sector.

At present Tamil Nadu has 42 sugar mills, out of which 16 are under the co-operative sectors, three owned by public sector, 23 are private mills.

Jaggery, kandasari and sugar the products from the sugar industry.

## DEMAND AND SUPPLY

I. CHOOSE THE CORRECT ANSWER:

1. There exists an indirect relationship between price and demand

2. Law of demand is only applicable to very low priced goods

3. One of the determinants of demand is taste and preference.

II. WRITE SHORT NOTE ON :

1. Alfred marshal’s law of demand:

The greater the amount to be sold the smaller must be the price at which it is offered.

In other words, the amount demanded increases with a fall in price and diminishes with a rise in price.

2. Law of supply:

As the price of the commodity rises, the quantity supplied is extended and as the price of the

commodity falls the quantity supplied is contracted. This is called the law of supply.

3. List out the determinants of supply:

• The determinants of supply are
• Production technology
• Prices of factors
• Prices of other products
• Number of producers
• Future price expectation
• Taxes and subsidies
• Non economic factors like natural calamities, war, epidemics etc.

III. WRITE IN A PARAGRAPH:

1. With the help of table explain.

The following demand schedule shows the inverse or indirect relationship between price and demand.

The above demand schedule shows the different quantities demanded at different prices by an individual consumer.

When the price of the mangoes is Rs. 25 per kg the consumer demands 1 kg.

When the price falls from Rs. 25 to Rs. 20, Rs. 15, Rs. 10 and Rs. 5, the consumer increases his demand from 1 to 2, 3, 4 and 5 kgs respectively.

This shows that with a fall in price the demand increases.

It indicates the indirect relationship between price and demand.