According to a report forwarded by the Reserve Bank of India, there was a fall in the rate of inflation as measured by the Consumer Price Index (CPI) on a year-on-year basis to 5% from 8% in the previous year. Which of the following statements represents the situation?

Note: The following question is for the Visually Impaired Candidates only,in lieu of Q. No. 11 :

(a) ‘‘Demand curve is the Average Revenue (AR) curve of a firm.’’ Do you agree? Discuss briefly, with reason in support of your answer.

(b) The market for a commodity is in equilibrium. The supply of the commodity increases without any corresponding change in the

demand for the commodity. Discuss the impact of the change on the equilibrium price and equilibrium quantity.

OR

Elaborate on three main features of a monopolistic competitive form of market.

Name any two sources of demand for foreign exchange by households in an economy.

Define autonomous transactions in Balance of Payments of an economy.

OR

Define accommodating transactions in Balance of Payments of an economy.