Market Equilibrium and Price Determination
Economics ⇒ Markets and Price Determination
Market Equilibrium and Price Determination starts at 11 and continues till grade 12.
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See sample questions for grade 11
Define market equilibrium in the context of economics.
Describe the effect of a government-imposed price ceiling on market equilibrium.
Describe the process by which a market moves towards equilibrium when there is excess demand.
Explain the effect of a decrease in input prices on the equilibrium price of a good, assuming demand remains unchanged.
A market is in equilibrium at a price of Rs. 50 where quantity demanded and supplied are both 100 units. If the price rises to Rs. 60, quantity demanded falls to 80 units and quantity supplied rises to 120 units. What is the excess supply at Rs. 60?
If the demand function is Qd = 500 - 5P and the supply function is Qs = 3P + 100, calculate the equilibrium quantity.
If the market demand and supply equations are Qd = 200 - 2P and Qs = 3P - 100, find the equilibrium price.
If the supply of onions increases due to a bumper crop, what is likely to happen to the equilibrium price, assuming demand remains unchanged?
If the demand for a commodity increases while supply remains constant, what will happen to the equilibrium price? (1) It will increase, (2) It will decrease, (3) It will remain unchanged, (4) It will become zero
Suppose the government imposes a price ceiling on wheat below the equilibrium price. What is the likely result? (1) Surplus of wheat, (2) Shortage of wheat, (3) No effect, (4) Increase in equilibrium price
Suppose the government sets a minimum price (floor) above the equilibrium price. What is the likely outcome? (1) Excess demand, (2) Excess supply, (3) Market equilibrium, (4) No effect
Which of the following best describes excess demand? (1) Quantity supplied exceeds quantity demanded, (2) Quantity demanded exceeds quantity supplied, (3) Quantity demanded equals quantity supplied, (4) None of the above
At equilibrium price, the quantity demanded is ______ to the quantity supplied.
Fill in the blank: A rightward shift in the supply curve, with demand constant, leads to a ______ in equilibrium price.
Fill in the blank: The price at which the intentions of buyers and sellers match is called the ______ price.
Fill in the blank: When the market is not in equilibrium, there is either ______ demand or ______ supply.
State whether the following is true or false: Price mechanism helps in the allocation of resources.
True or False: A leftward shift in the demand curve, with supply constant, will increase the equilibrium price.
True or False: An increase in supply, with demand remaining constant, will lead to a fall in equilibrium price.
True or False: At equilibrium, the market clears, meaning there is no unsold stock or unmet demand.
