Answer 1:

a) Industry demand and Firm (Company) demand,

Industry demand has reference to the total demand for the products of a particular industry, e.g.
the demand for textiles.
Company demand has reference to the demand for the product of a particular company which is
a part of that industry, e.g., the demand for textiles produced by the XYZ. The company demand
may be expressed as a percentage of industry demand. The percentage so calculated would
indicate the market share of the company. Monopoly is that market category in which there is
only a single seller and therefore there is no difference between a firm and an industry.
The firm is itself an industry and therefore the demand curve of the individual firm as well as the
industry demand curve under monopoly will be the same and as we shall see later is downward
sloping.
The demand curve for an individual firm is horizontal- this is because consumers cannot
differentiate between firms, thus firms are price takers.
The demand curve for the industry is a normal downward sloping curve (unless it's a specific
market with a different demand- Veblen goods, etc.)

b) Short-run demand and Long run demand

In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay.
The term demand signifies the ability or the willingness to buy a particular commodity at a given point of
time.
Short run is defined as a period where adjustments to changed conditions are only partial, e.g.; if defined
for the product for a firm increases, in the short run it can meet the increased demand through changes in
man-hours and intensive use of existing machinery, but it cannot increase its production capacity.
Long-run is a period where adjustment to changed circumstances is complete. For example, the above
mentioned firm can meet the increased demand in the long-run by making changes in its production
capacity or by setting up an additional plant, besides changes in man-hours and intensive use of its
existing machinery.

Because of the stickiness of resources in the short run, in the short run there can be imbalances in supply
and demand. Areas in which there is increased demand may encounter shortages until resources can be
shifted to it and likewise areas of decreasing demand can see excess supply. The long run is assumed to
have no imbalances of this sort.

c) Durable goods demand and Non-durable goods demand.

Durable Goods

Goods that go on yielding services to the consumers over a number of periods in future. Further,
because of their durability they can be stored for longer periods of time.
Durable goods tend to have a long useful life. For statistical purposes, a durable good is expected
to last at least three years, according to the Economics and Statistics Administration
Consumer durable goods include items like furniture, jewelry and cars. Large appliances such as
stoves and washing machines are durable goods.
Durable goods can be used many number of times
Durable goods can be resold after some years
The significance of changes in durable goods production and sales is more complex.

Durable goods are usually more expensive than non-durable goods that have to be
purchased over and over again.

Non-Durable Goods

Goods are those which wear out easily and therefore they can be used for short period
of time only.
Nondurable products can used for only limited number of times in some cases only
once.
The market for some non-durable goods, such as food, tends to be stable

Answer 6-Since factor incomes arise from production of goods arid services, and since
incomes are expended on goods and services produced, three alternative methods of
measuring national income are possible.
a) Output Method: This method is also called as production Method. It consists of following
three stages.
1) Estimation of the gross value of domestic output in the various sectors of production.
2) Determination of cost of materials used, services rendered to these sectors by other sectors
of production and also annual depreciation value, of the plants and equipments used in these
Sectors.
3) Deduction of costs and depreciation values from the gross value production which gives
(derives) net value of domestic output.
b) Income Method: Under output method, the net output estimates are obtained. This estimate
is regarded as the equivalent of the value of sales of the output. This is the income to producer
while receipts of the factor suppliers. This income comprisesi) Wages earned by the workers, salaries of staff, social Security, bonus etc.
ii) Earning of self employed persons, dividends of shareholders
iii) Rent of land, factories and business premises.
iv) Interest on capital and earnings of public enterprises the sum of all above gives us National
Income.
c) Expenditure Method: Under this method, estimation of the disposal of income on the
purchase of final goods end services has been done. It includes following.
a) Personal consumption expenditure of households.
b) Gross private domestic investment, i.e. business spending on capital goods.
c) The net foreign investment, i.e. net Spending by foreign nationals.
d) Govt. purchases of goods and services.
Method used in India: The National Income Committee used a combination of Income method
and the Product (output) method for estimating nationa1 income. In the agriculture and industry
sectors the output method (product method) is used. Here net value of product arc computed
and incorporated in national income. But in the fields of commerce, transport, banking the
income method is used. The National income involves the value of products and income earned
by the people engaged in service sector.

Answer 5:-