Effects of Shifts in Demand and Supply on Equilibrium
Economics ⇒ Markets and Price Determination
Effects of Shifts in Demand and Supply on Equilibrium starts at 11 and continues till grade 12.
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A government subsidy increases the supply of wheat. What is the likely effect on the equilibrium price, assuming demand remains constant?
Describe the effect on equilibrium quantity if demand increases but supply remains unchanged.
Explain the effect on equilibrium price and quantity if both demand and supply decrease, but the decrease in supply is greater than the decrease in demand.
Explain the effect on equilibrium price and quantity if both demand and supply increase by the same percentage.
A festival increases the demand for sweets, but the supply remains unchanged. What happens to the equilibrium price? (1) It increases (2) It decreases (3) It remains the same (4) It fluctuates randomly
A government subsidy increases the supply of wheat. What is the likely effect on the equilibrium price, assuming demand remains constant?
A sudden increase in the price of petrol leads to a decrease in the demand for cars. What happens to the equilibrium price and quantity of cars, assuming supply is unchanged? (1) Both price and quantity increase (2) Both price and quantity decrease (3) Price increases, quantity decreases (4) Price decreases, quantity increases
If the demand for a good falls due to a decrease in consumer income, what happens to the equilibrium price and quantity, assuming supply is unchanged? (1) Both price and quantity increase (2) Both price and quantity decrease (3) Price increases, quantity decreases (4) Price decreases, quantity increases
A festival increases the demand for sweets, but the supply remains unchanged. What happens to the equilibrium price? (1) It increases (2) It decreases (3) It remains the same (4) It fluctuates randomly
A sudden increase in the price of petrol leads to a decrease in the demand for cars. What happens to the equilibrium price and quantity of cars, assuming supply is unchanged? (1) Both price and quantity increase (2) Both price and quantity decrease (3) Price increases, quantity decreases (4) Price decreases, quantity increases
If the demand for a good falls due to a decrease in consumer income, what happens to the equilibrium price and quantity, assuming supply is unchanged? (1) Both price and quantity increase (2) Both price and quantity decrease (3) Price increases, quantity decreases (4) Price decreases, quantity increases
If the supply of a commodity decreases and demand increases at the same time, what will be the effect on equilibrium quantity? (1) It will definitely increase (2) It will definitely decrease (3) It may increase, decrease, or remain unchanged (4) It will remain unchanged
Fill in the blank: If both demand and supply decrease, the effect on equilibrium quantity is that it ________.
Fill in the blank: If demand increases and supply decreases simultaneously, the equilibrium price will ________.
Fill in the blank: If demand increases more than supply, equilibrium price ________.
Fill in the blank: When both demand and supply increase, the effect on equilibrium price depends on the ________ of the shifts.
State whether the following statement is true or false: If demand and supply both increase by the same amount, equilibrium price remains unchanged.
State whether the following statement is true or false: If supply increases more than demand, equilibrium price will fall.
True or False: A decrease in supply with constant demand leads to a higher equilibrium price.
True or False: A simultaneous increase in both demand and supply will always increase the equilibrium price.
