Market Equilibrium and Effects of Shifts in Demand and Supply
Economics ⇒ Consumer and Producer Behaviour
Market Equilibrium and Effects of Shifts in Demand and Supply starts at 11 and continues till grade 12.
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A market is in equilibrium at a price of ₹50 and quantity of 100 units. If the government imposes a price ceiling of ₹40, what is likely to occur?
Define market equilibrium in the context of demand and supply.
Explain the concept of price mechanism in the context of market equilibrium.
Explain the difference between movement along a demand curve and a shift in the demand curve.
A market is in equilibrium at a price of ₹50 and quantity of 100 units. If the government imposes a price ceiling of ₹40, what is likely to occur?
Suppose the demand and supply equations for a good are Qd = 100 - 2P and Qs = 20 + 3P. Find the equilibrium price and quantity.
Suppose the demand and supply schedules for a commodity are as follows: At price ₹10, quantity demanded is 50 units and quantity supplied is 70 units. At price ₹20, quantity demanded is 40 units and quantity supplied is 40 units. What is the equilibrium price?
Suppose the demand for tea increases due to a rise in consumer income. What will happen to the equilibrium price and quantity of tea, assuming supply is unchanged?
If both demand and supply increase simultaneously, what can be said about the equilibrium quantity? (1) It will increase (2) It will decrease (3) It will remain unchanged (4) Cannot be determined without more information
If the demand curve shifts to the right and the supply curve shifts to the left, what will happen to the equilibrium price? (1) It will increase (2) It will decrease (3) It will remain unchanged (4) Cannot be determined without more information
If the demand for a good falls and the supply increases at the same time, what will happen to the equilibrium price? (1) It will rise (2) It will fall (3) It will remain unchanged (4) Cannot be determined without more information
If the equilibrium price of a good is ₹30 and the government fixes the price at ₹20, what is the likely outcome? (1) Surplus (2) Shortage (3) No effect (4) None of the above
A leftward shift in the supply curve, with demand unchanged, will lead to a ______ in equilibrium price.
At equilibrium price, the quantity demanded is ______ to the quantity supplied.
The equilibrium price is also known as the ______ price.
The equilibrium quantity is determined by the intersection of ______ and ______ curves.
True or False: A decrease in supply, with demand remaining constant, leads to a higher equilibrium price.
True or False: A price floor set below the equilibrium price will have no effect on the market.
True or False: A rightward shift in the supply curve leads to a fall in equilibrium price, assuming demand remains unchanged.
True or False: An increase in the number of sellers in the market will shift the supply curve to the right.
