Producer Behaviour And Supply

J.\,R. Hicks ने साम्य (equilibrium) को ऐसी स्थिति बताया जिसमें परिवर्तन की शुद्ध प्रवृत्ति न हो—अर्थात शक्ति‑संतुलन के कारण न आगे बढ़ने की न पीछे हटने की प्रवृत्ति हो। यह परिभाषा आंशिक व सामान्य दोनों साम्य पर लागू होती है।

पूर्ति फलन को एक फर्म के लिए लिखें तो वह व्यक्तिगत पूर्ति है। एक उद्योग में फर्में हों तो बाजार पूर्ति होगी; ग्राफ पर यह क्षैतिज जोड़ से बनता है। नई फर्म का प्रवेश, पुरानी का निकास, तकनीक और लागत में बदलाव बाजार पूर्ति वक्र को दाएँ‑बाएँ खिसकाते हैं। व्यक्तिगत वक्र का ढाल प्रायः धनात्मक है क्योंकि कीमत बढ़ने पर लाभ‑प्रेरणा से उत्पादन बढ़ता है। नीतिगत कर‑सब्सिडी जैसी चीजें भी लागत बदलकर दोनों वक्रों को प्रभावित करती हैं। इसलिए उद्योग‑स्तर के विश्लेषण में हमेशा क्षैतिज योग का सिद्धान्त लागू करें।

लागत‑मात्रा‑लाभ विश्लेषण में BEP जोखिम और योजना का मूल सूचक है। कुल लागत तथा कुल राजस्व . जब तब न लाभ न हानि; इसके दाईं ओर लाभ और बाईं ओर हानि होती है। योगदान प्रति इकाई वह राशि है जो स्थिर लागत ढकने और फिर लाभ देने में सहायक बनती है। ग्राफ में और की रेखाओं का प्रतिच्छेद BEP देता है; इसके बाद जितनी अधिक हो, जोखिम कम होता है। उत्पाद‑मिश्रण, कीमत, विज्ञापन या लागत संरचना में बदलाव से BEP बदलता है; प्रबंधक इसे घटाने हेतु कीमत‑रणनीति, दक्षता और स्थिर लागत नियंत्रण पर काम करते हैं।

रैखिक माँग पर पहले बढ़ता है, मध्यबिंदु पर अधिकतम होता है और उसके बाद घटता है। कारण समझें: . जब (लोचदार) तो और ; पर और अधिकतम; पर और . इसलिए किसी फर्म को कुल आय घटने से बचना हो तो उसे अपनी कीमत उस सीमा से नीचे नहीं घटानी चाहिए जहाँ माँग अलोचदार हो जाती है। व्यावहारिक रूप में बिक्री आँकड़ों से कुल व्यय विधि का उपयोग कर क्षेत्र पहचाना जा सकता है: यदि कीमत घटाने पर कुल व्यय बढ़ता है तो लोचदार; यदि घटता है तो अलोचदार।

यह फलन तकनीकी दक्षता का मानचित्र है: किसी भी इनपुट‑समुच्चय के लिए यह अधिकतम सम्भव आउटपुट बताता है। अल्पकाल में जैसा रूप लेते हैं जहाँ स्थिर है; यहाँ चर के प्रतिफल का नियम लागू होता है और सीमांत उत्पाद पहले बढ़ता फिर घटता है। दीर्घकाल में में सभी कारक परिवर्ती होते हैं, और पैमाने के प्रतिफल—बढ़ते, स्थिर, घटते—देखे जाते हैं। सम इसो क्वांट और सम लागत रेखा के स्पर्श से लागत‑न्यूनतम संयोजन मिलता है। यह फलन फर्म के लागत फलन का मूल स्रोत है क्योंकि लागत = इनपुट की कीमतें × उनकी मात्राएँ।

कुल आय वह राजस्व है जो फर्म को इकाइयाँ बेचने पर मिलता है: (यदि स्थिर हो) अथवा । औसत आय प्रति इकाई राजस्व है; यह बाज़ार मूल्य के बराबर होता है। सीमांत आय वह अतिरिक्त राजस्व है जो एक और इकाई बेचने से प्राप्त होता है। पूर्ण प्रतिस्पर्धा में स्थिर, इसलिए । अपूर्ण प्रतिस्पर्धा में नीचे ढलान वाला, और अधिकतम तब जब (रैखिक माँग पर मध्य‑बिंदु)। लोच से सम्बन्ध: ; इसलिए पर , पर , पर होता है।

का अर्थ है कि कीमत बदलने पर आपूर्ति मात्रा नहीं बदलती। ग्राफ में यह ऊर्ध्वाधर आपूर्ति वक्र से प्रदर्शित होता है। ऐसी स्थिति बहुत अल्पकाल में, जैसे नाशवान वस्तुओं या पूर्ण क्षमता बाधा के समय, देखने को मिल सकती है।

किस स्तर का उत्पादन करने पर कुल, औसत और सीमांत लागतें क्या होंगी—यह निर्णय लागत फलन से मार्गदर्शन लेता है। इनपुट कीमतें और तकनीक नियत रहते हुए अधिक उत्पादन प्रायः पहले पैमाने की अर्थव्यवस्थाओं के कारण लागत कम करता है, फिर भीड़‑भाड़ और प्रबंधकीय सीमाओं से बढ़ा सकता है। अल्पकाल में कुछ कारक स्थिर रहने से अपरिवर्तित और मात्रा पर निर्भर होती है; दीर्घकाल में सभी कारक परिवर्ती होने से आरेख U‑आकार का बनता है। सीमांत लागत उत्पादन निर्णय का मुख्य आधार है; लाभ‑अधिकतम पर और स्थिर संतुलन हेतु नीचे से काटता है। नीति स्तर पर कर, सब्सिडी, मजदूरी और ब्याज दर जैसे तत्व लागत फलन को स्थानांतरित करते हैं।

यदि आपूर्ति रेखा से गुजरती है तो किसी भी बिंदु पर की मान 1 आती है—क्योंकि ऐसे ray पर का समानुपात बना रहता है। अतः यह unitary elastic supply दर्शाती है।

उत्पादन के पारम्परिक साधन हैं भूमि, श्रम, पूँजी और उद्यमिता/संगठन। मुद्रा स्वयं भौतिक उत्पादन कारक नहीं है; यह विनिमय का माध्यम है जो संसाधन आवंटन को आसान बनाता है, पर संसाधन का विकल्प नहीं है।

दीर्घकाल (long run) में सभी कारक परिवर्ती होते हैं; इसलिए उत्पादन फलन में इनपुटों के समानुपाती परिवर्तन से आउटपुट कैसे बदलता है—इसी को पैमाने के प्रतिफल कहते हैं: अल्पकाल में चर के प्रतिफल (Law of Variable Proportions) का अध्ययन होता है, पर दीर्घकालीन उत्पादन विश्लेषण returns to scale पर केन्द्रित रहता है।

क्लासिकल वर्गीकरण में भूमि और पूँजी निष्क्रिय (passive) कारक हैं—वे स्वयं कुछ नहीं करते जब तक कोई श्रम (मानव प्रयत्न) उन्हें उत्पादन में न लगाए। इसलिए श्रम को सक्रिय कारक कहा जाता है। आधुनिक सिद्धान्त में उद्यमिता/संगठन भी सक्रिय मानी जाती है, पर पारम्परिक उत्तर में labour को ही the active factor स्वीकार किया जाता है।

स्थिर लागत (Fixed Cost) वह है जो उत्पादन‑मात्रा बदलने पर अल्पकाल में नहीं बदलती—किराया, बीमा, स्थायी कर्मचारियों का वेतन, पूँजी पर ब्याज आदि। कच्चा माल सीधे उत्पादन‑मात्रा पर निर्भर होता है, इसलिए यह चर लागत (Variable Cost) में आता है।

वितरण सिद्धान्त में लाभ (profit) उद्यमी को जोखिम व अनिश्चितता वहनतथा नवोन्मेष के प्रतिफल के रूप में मिलता है। ब्याज पूँजी का, लगान/किराया भूमि/सम्पदा का, और मजदूरी श्रम का प्रतिफल है।

TR . अतः माँग‑लोच . इसे MR में रखने पर अतः

पूर्ति का नियम कहता है कि कीमत बढ़ने पर आपूर्तिकर्ता अधिक मात्रा उपलब्ध कराते हैं—लाभ‑प्रेरणा और बढ़ती सीमांत लागत के कारण Q_s\uparrow\) । इसलिए पूर्ति वक्र प्रायः ऊर्ध्वगामी होता है। (1) माँग का नियम Q_d\downarrow\) बताता है; (3) लोच मापन है, नियम नहीं।

पूर्ति‑लोच (Elasticity of Supply) मापन की मानक दो विधियाँ—बिंदु (point) और आर्क (arc)—स्वीकार्य हैं। (1) गलत; अल्पकाल में क्षमता सीमाएँ होने से पूर्ति कम लोचदार रहती है। (2) सामान्य वर्गीकरण पाँच प्रकार का माना जाता है (शून्य, इकाई से कम, इकाई, इकाई से अधिक, पूर्णतः लोचदार)। (3) प्रकृति/तकनीक/समयावधि पर लोच अवश्य निर्भर करती है।

Step 1: Understanding the difference in interest rates.
Banks typically charge a higher rate of interest on loans compared to the interest rate they pay on deposits. This difference is the bank's profit margin. The rate of interest on loans is higher to compensate for the risk involved in lending money.

Step 2: Analyzing the options.
(A) More: Correct. The interest rate on loans is generally higher than the rate on deposits.
(B) Equal: This is incorrect, as the interest rates on loans and deposits are not typically equal.
(C) Less: This is incorrect, as the rate on loans is typically higher than that on deposits.
(D) None of these: This is incorrect, as the correct answer is (A) More.

Step 3: Conclusion.
The correct answer is (A) More, as the interest rate on loans is usually higher than that on deposits.

Step 1: Understanding marginal and average cost.
The marginal cost curve represents the additional cost of producing one more unit of output, while the average cost curve shows the total cost per unit of output. The marginal cost curve intersects the average cost curve at the point where average cost is at its minimum. This is because when marginal cost is below average cost, it pulls the average cost down, and when marginal cost is above average cost, it pushes the average cost up.

Step 2: Analyzing the options.
(A) At highest point: This is incorrect. The marginal cost curve does not intersect the average cost curve at its highest point.
(B) At lowest point: Correct. The marginal cost curve intersects the average cost curve at its lowest point, where the average cost is minimized.
(C) At mid-point: This is incorrect. The marginal cost curve does not intersect the average cost curve at the mid-point.
(D) None of these: This is incorrect, as option (B) is the correct answer.

Step 3: Conclusion.
The correct answer is (B) At lowest point, as this is where the marginal cost curve intersects the average cost curve.

Money plays a vital role in an economy by facilitating trade, storing value, and acting as a unit of account. The functions of money can be understood as follows:

Step 1: Medium of Exchange.
The most basic function of money is to act as a medium of exchange, which eliminates the need for barter. Money allows goods and services to be exchanged more efficiently, as it is universally accepted. For example, instead of exchanging apples for oranges, money allows consumers to purchase both items with the same medium.

Step 2: Store of Value.
Money serves as a store of value, meaning it can be saved and used for future transactions. Unlike perishable goods, money retains its value over time, allowing individuals to store wealth and use it when needed. For example, you can save money today and spend it months or years later without it losing its purchasing power.

Step 3: Unit of Account.
Money acts as a unit of account, which provides a standard measure for the value of goods and services. This function allows individuals and businesses to compare the relative value of different goods and services. For example, when a product is priced at 100, they can repay the amount in the future, using money as the means of payment.

Step 5: Conclusion.
Money’s primary functions—medium of exchange, store of value, unit of account, and standard of deferred payments—are fundamental to the functioning of an economy. Without these functions, trade would be less efficient, and the economy would be less developed.

The exchange rate is the price of one country's currency in terms of another country's currency. It determines how much of one currency (e.g., the Indian Rupee) is needed to purchase a unit of another currency (e.g., the U.S. Dollar). In terms of the rupee and dollar, the exchange rate specifies how many Indian Rupees are needed to buy one U.S. Dollar or vice versa.

Step 1: Direct Exchange Rate.
In a direct exchange rate system, the value of the foreign currency (e.g., dollar) is quoted in terms of the domestic currency (e.g., rupee). For example, if the exchange rate is , it means that one U.S. Dollar is equal to 75 Indian Rupees.

Step 2: Indirect Exchange Rate.
In an indirect exchange rate system, the value of the domestic currency (e.g., rupee) is quoted in terms of the foreign currency (e.g., dollar). For example, if the exchange rate is , it means that one Indian Rupee is equal to 0.013 U.S. Dollars.

Step 3: Exchange Rate Determinants.
The exchange rate is influenced by various factors, including:
- Supply and demand for currencies in the foreign exchange market.
- Inflation rates and interest rates in the respective countries.
- Government policies related to monetary supply, foreign trade, and capital flows.

A trade deficit occurs when a country's imports exceed its exports. In other words, it happens when the value of goods and services a country buys from other countries is greater than the value of the goods and services it sells to other countries. The trade deficit is a key component of a country's balance of payments.

Step 1: Understanding Trade Deficit.
The trade deficit is calculated as the difference between the value of imports and the value of exports. If a country imports more than it exports, it runs a trade deficit. For example, if a country imports \$500 billion worth of goods but exports only \$300 billion, the trade deficit is \$200 billion.

Step 2: Causes of Trade Deficit.
There are several reasons why a country might experience a trade deficit:
- Higher domestic consumption than production: If a country's domestic consumption exceeds its production capacity, it will import more goods to meet the demand.
- Weak currency: A weaker domestic currency makes imports more expensive and can increase the trade deficit.
- Higher demand for foreign goods: Consumers might prefer foreign goods due to factors like quality, price, or availability.

Step 3: Consequences of Trade Deficit.
While a trade deficit is often seen as a negative economic indicator, it is not necessarily harmful. The key effects are:
- Foreign borrowing: Countries with trade deficits may borrow from foreign countries to finance the gap.
- Impact on the currency: A persistent trade deficit can lead to a devaluation of the country's currency, making imports more expensive.

An open economy refers to an economy that engages in international trade, allowing goods, services, capital, and labor to flow freely across borders. Unlike a closed economy, which does not trade with other countries, an open economy allows for the import and export of goods and services, investments, and the movement of labor. The key characteristics of an open economy include:

Step 1: International Trade.
In an open economy, countries trade goods and services with each other. This means that businesses and consumers have access to a wider variety of goods, often at lower prices, and countries can export products they produce efficiently while importing goods they cannot produce as efficiently.

Step 2: Capital Flows.
An open economy allows capital to flow in and out of the country. This includes investments by foreign entities in local businesses, as well as local investments abroad. This capital mobility allows for more efficient allocation of resources, and foreign investments can stimulate economic growth.

Step 3: Labor Mobility.
In some open economies, labor is also allowed to move across borders. This could mean immigration of workers from foreign countries to fill labor shortages, or emigration of local workers seeking better opportunities abroad. This mobility of labor can lead to more efficient labor markets.

Step 4: Effects on Economic Policies.
An open economy must consider the global economic environment when formulating policies. The flow of goods, services, and capital makes it essential for policymakers to consider exchange rates, trade balances, and global economic conditions.

Step 5: Conclusion.
An open economy is characterized by international interactions that influence its economic performance. It relies on trade, investment, and the mobility of factors of production (such as labor and capital) to maintain growth and competitiveness.

Step 1: Understanding the market types.
In economics, the type of market determines the pricing power of consumers and firms. A market where both consumers and firms are price takers is characterized by perfect competition. In this market, no single firm can influence the price, and all firms sell identical products.

Step 2: Analyzing the options.
(A) Monopoly: Incorrect. In a monopoly, one firm controls the entire market and can set prices, so consumers and other firms are not price takers.
(B) Perfect competition: Correct. In perfect competition, many firms sell identical products, and both consumers and firms must accept the market price, making them price takers.
(C) Oligopoly: Incorrect. In an oligopoly, a few firms dominate the market, and they may have some control over pricing.
(D) None of these: Incorrect, as the correct answer is (B) Perfect competition.

Step 3: Conclusion.
A market where both consumers and firms are price takers is called perfect competition.

Step 1: Understanding monopolistic competition.
Monopolistic competition is a market structure in which many firms sell similar but not identical products. It arises when firms offer differentiated products, which means that the goods are non-homogeneous.

Step 2: Analyzing the options.
(A) Due to homogeneous good: This option refers to perfect competition, not monopolistic competition, as homogeneous goods are identical across firms.
(B) Due to non-homogeneous good: Correct. Monopolistic competition arises when firms sell differentiated products, meaning the goods are non-homogeneous.
(C) Due to perfect substitute goods: This would refer to perfect competition where products are substitutes for each other.
(D) None of these: This is incorrect because the correct answer is (B).

Step 3: Conclusion.
Monopolistic competition arises when firms sell differentiated products, meaning the goods are non-homogeneous. Therefore, the correct answer is (B) Due to non-homogeneous good.

Step 1: Understanding market types.
Monopolistic competition is a market structure in which many firms sell similar but not identical products. The market for biscuits typically falls under this category, as there are many brands offering a variety of biscuits with slightly different characteristics.

Step 2: Analyzing the options.
(A) Monopoly: This is incorrect, as a monopoly is a market with a single supplier, which does not apply to the biscuit market.
(B) Monopolistic competition: Correct. The biscuit market is characterized by many firms offering differentiated products, which is the essence of monopolistic competition.
(C) Oligopoly: This is incorrect, as an oligopoly is a market dominated by a few firms, which is not the case for biscuits.
(D) Perfect competition: This is incorrect, as perfect competition implies identical products, which does not apply to biscuits.

Step 3: Conclusion.
The correct answer is (B) Monopolistic competition, as the biscuit market consists of many firms offering differentiated products.

Step 1: Historical context of the Great Depression.
The period between 1929 and 1933 marks the Great Depression, a severe worldwide economic downturn. During this time, unemployment in the United States was at an all-time high, with large numbers of Americans being without work.

Step 2: Analyzing the options.
(A) Second: This is incorrect because it was not just every second person who was unemployed.
(B) Third: Correct. During the Great Depression, it was estimated that one out of every three Americans was unemployed.
(C) Fourth: This option is incorrect because unemployment was far more widespread than this.
(D) Fifth: This is also incorrect as unemployment was higher than this rate.

Step 3: Conclusion.
The correct answer is (B) Third, as during the Great Depression, approximately one in every three Americans was unemployed.

Step 1: Understanding the context.
Price determination and consumer behavior are topics primarily studied in microeconomics. Microeconomics focuses on the behavior of individual consumers and firms in the market, how prices are determined, and how these factors influence supply and demand.

Step 2: Analyzing the options.
(A) Macroeconomics: This is incorrect. Macroeconomics deals with large-scale economic factors like national income, inflation, and unemployment, not individual market behavior or price determination.
(B) Microeconomics: Correct. Microeconomics examines the factors that influence individual consumer choices, the behavior of firms, and how prices are determined in specific markets.
(C) International economics: This is not correct. International economics focuses on trade, exchange rates, and global economic factors rather than individual market behaviors.
(D) None of these: This is incorrect, as the correct answer is (B) Microeconomics.

Step 3: Conclusion.
Price determination and consumer behavior are studied under Microeconomics. Hence, the correct answer is (B) Microeconomics.

Investment refers to the allocation of resources, usually money, with the expectation of generating a return or profit over time. It involves committing funds to an asset or project that will yield future income or capital gains. Investment plays a vital role in the economy, as it contributes to capital formation and promotes economic growth.

Step 1: Types of Investment.
There are two main types of investment:
- Physical Investment: This type of investment involves the purchase of tangible assets such as machinery, buildings, and infrastructure. These assets are used in the production process to generate goods and services.
- Financial Investment: This refers to the purchase of financial instruments such as stocks, bonds, or mutual funds. Financial investments are made with the expectation of earning interest, dividends, or capital gains.

Step 2: Importance of Investment.
Investment is crucial for economic growth as it leads to the creation of capital, which is used to increase productivity and output in the economy. It helps businesses expand, creates job opportunities, and enhances the standard of living.

The price elasticity of demand ( ) measures the responsiveness of quantity demanded to a change in the price of a good. When the price elasticity of demand is equal to 1, it is known as unitary elastic demand. In this case, a change in price leads to an equal proportional change in quantity demanded.

Step 1: Characteristics of Unit Elastic Demand.
For unitary elasticity ( ), the percentage change in quantity demanded is exactly equal to the percentage change in price. The demand curve for unitary elasticity is a rectangular hyperbola.

Step 2: Graph of Unit Elastic Demand.
The graph of the demand curve with unitary elasticity is shown below.
\begin{center} \begin{tikzpicture} \begin{axis}[ axis lines = middle, xlabel = {Price (P)}, ylabel = {Quantity Demanded (Q)}, domain=0.1:10, samples=100, width=10cm, height=8cm, enlargelimits=true, xtick=\empty, ytick=\empty, grid=major ] \addplot [ thick, blue ] {1/x}; % This is the equation for the rectangular hyperbola for unitary elasticity. \end{axis} \end{tikzpicture} \end{center} This curve represents the situation where any percentage change in price results in an equal percentage change in quantity demanded, leading to a constant total revenue across different price levels.

Step 1: Understanding marginal cost.
Marginal cost is the additional cost incurred from producing one more unit of output. It is calculated by taking the difference between the total cost of producing units of output and the total cost of producing units. This gives the increase in cost resulting from the production of an additional unit.

Step 2: Analyzing the options.
(A) Average cost: This is incorrect. Average cost is the total cost divided by the number of units produced, not the change in total cost when one more unit is produced.
(B) Marginal cost: Correct. The change in total cost when one more unit is produced is called marginal cost.
(C) Fixed cost: Fixed costs do not change with the level of output, so they are not related to the change in cost from producing one more unit.
(D) None of these: This is incorrect, as option (B) is the correct answer.

Step 3: Conclusion.
The correct answer is (B) Marginal cost, as it is defined as the change in total cost when one more unit is produced.

Step 1: Understanding net indirect taxes.
Net Indirect Taxes are calculated by subtracting direct taxes from indirect taxes. Indirect taxes are taxes such as VAT, sales tax, and excise duties, while direct taxes are income tax, corporate tax, etc. The term "Z" in the equation refers to direct taxes.

Step 2: Analyzing the options.
(A) : Correct. Direct taxes are subtracted from indirect taxes to compute net indirect taxes.
(B) : This is incorrect, as "factor" refers to the inputs used in production and is not related to taxes in this context.
(C) : Corporation tax is a form of direct tax but does not specifically explain "Z" in the equation.
(D) None of these: This is incorrect, as option (A) is the correct answer.

Step 3: Conclusion.
The correct answer is (A) , as the equation reflects the relationship between indirect taxes and direct taxes.

Step 1: Understanding subsidy.
A subsidy is a financial assistance provided by the government to lower the cost of a good or service for the consumer. In this case, the government provides subsidies for cooking gas (LPG) to make it more affordable for consumers.

Step 2: Analyzing the options.
(A) Subsidy: Correct. Subsidies are provided to reduce the price of goods and services like LPG.
(B) Direct tax: This is not correct, as direct taxes are taxes paid directly to the government, such as income tax.
(C) Indirect tax: This is also incorrect, as indirect taxes are levied on goods and services and paid indirectly by consumers, not through government assistance like a subsidy.
(D) None of these: This is incorrect, as the correct answer is (A) Subsidy.

Step 3: Conclusion.
The correct answer is (A) Subsidy, as subsidies are given to reduce the cost of goods and services such as LPG.

Step 1: Understanding the relationship between price rise and money demand.
As prices rise, individuals and businesses require more money for transactions. This is due to the fact that higher prices increase the amount of money needed to purchase the same quantity of goods and services. Therefore, an increase in prices leads to an increase in the demand for money for transaction purposes.

Step 2: Analyzing the options.
(A) Increase: Correct. The demand for money increases as prices rise because more money is needed for transactions at higher prices.
(B) Decrease: Incorrect. A decrease in prices would lead to a decrease in the demand for money, but higher prices do the opposite.
(C) Remain constant: Incorrect. The demand for money does not remain constant when prices rise.
(D) All of these: Incorrect, as only (A) is correct.

Step 3: Conclusion.
The demand for money for transaction purposes will increase due to a rise in prices.

Step 1: Understanding M1 in money supply.
M1 is a measure of the money supply that includes the most liquid forms of money in an economy. It consists of currency notes and coins in circulation, as well as demand deposits (i.e., money that can be withdrawn from banks at any time without notice).

Step 2: Analyzing the options.
(A) Currency note and coins (CC): Correct. Currency notes and coins in circulation are part of M1.
(B) Demand deposits (DD): Correct. Demand deposits are included in M1 because they are easily accessible for transactions.
(C) Savings deposit in post office savings bank: Incorrect. Savings deposits are not part of M1, as they are less liquid than demand deposits.
(D) Both (A) and (B): Correct. Both currency notes and coins, as well as demand deposits, are components of M1.

Step 3: Conclusion.
The correct components of M1 are currency note and coins and demand deposits. Thus, the correct answer is (D).