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Market Equilibrium — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMarket Equilibrium3 Marks
Question
Given below are four statements. Indicate for each whether it reflects an increase or decrease in demand; quantity demanded; supply; quantity supplied.
  1. Air Deccan reduces its average plane fare by 30% in order to attract more passengers.
  2. The government grants export subsidy to producers of oranges in Nagpur to increase the sale of oranges abroad.
  3. Wheat farmers decide to withhold wheat as the market price is low.
  4. OPEC decides to increase the international oil price.
✓

Answer

  1. Increase in quantity demanded.
  2. Increase in supply.
  3. Decrease in supply.
  4. Decrease in quantity demanded.

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