Market Equilibrium Economics - Market Equilibrium

At a price below the equilibrium price, there is:

The price at which quantity supplied and quantity demanded are equal is termed as:

When both demand and supply decreases in the same proportion, then equilibrium price will:

Imperfect competition is a type of market structure showing some but not all feature of competitive market. Which of the following is/ are imperfect competition?

Which of the following is not an essential condition of pure competition?

Giving reasons, state whether the following statements are true or false:
If the supply curve is a horizontal straight line, change in demand will affect equilibrium quantity.

Giving reasons, state whether the following statements are true or false:
When income of buyers increase, equilibrium price falls.

Giving reasons, state whether the following statements are true or false:
An increase in supply results in a fall both in equilibrium quantity and equilibrium price.

Giving reasons, state whether the following statements are true or false:
If the supply curve is a vertical straight line, change in demand will not affect equilibrium price.

Giving reasons, state whether the following statements are true or false:
When demand increases more than proportionately than the increase in supply, equilibrium price will fall.

When demand increases with no change in supply, equilibrium price ________ and equilibrium quantity ________.

1. rises, rises.
2. rises, falls.
3. falls, falls.
4. falls, rises.

An ___________ in supply leads to rightward shift of supply curve.

__________ refers to the situation in which market demand is more than market supply of a commodity at a given price.

_________ means that both buyers and sellers are fully informed about the market price.

The supply curve shifts ___________ due to the technology becomes out dated.

A severe drought results in a drastic fall in the output of wheat. Analyse how will it affect the market price of wheat?

Define ‘equilibrium price’.

Give the meaning of equilibrium.

Name the form of market in which there are only two firms producer in a market?

What is the nature of product under perfect competition?

Define equilibrium price. Show with the help of a diagram, the effect on equilibrium price when demand increases and supply is perfectly elastic.

Explain why there are only a few firms in an oligopoly market?

How does a cost saving technological progress affect market price and the quantity exchanged of a commodity? Use diagram.

Why price remains unaffected when supply curve is perfectly elastic and demand curve shifts?

X and Y are complementary goods. Explain the sequence of effects of a fall in the price of X on the equilibrium price and quantity of Y.

What would be an effect on equilibrium price and quantity when demand and supply both increase at the same rate?
OR
Explain with the help of a diagram a situation when demand and supply curves shift to the right but equilibrium price remains the same.
OR
Market for a good is in equilibrium. What is the effect on equilibrium price and quantity if both the market demand and the market supply of the goods increase in the same proportion? Use diagram.

How does an increase in the input price affect equilibrium price and quantity exchanged of a commodity? Use diagram.

What is monopolistic competition? Can a seller in such a market influence the price? Explain.

How is the equilibrium price of a commodity affected by a leftward shift of the demand curve? Explain with the help of a diagram.

Explain with the help of a diagram, the effect of a decrease in the supply of a commodity on its equilibrium price and quantity.
OR
Explain the chain of effects of decrease in supply of a good on its price, supply and demand. Use diagram.

Explain how price is determined in a perfectly competitive market with fixed number of firms.

How are equilibrium price and quantity affected when income of the consumers:

1. increase?
2. decrease?

What do you mean by excess demand? Explain with the help of a diagram as to what will be the effect of an excess demand on the price of the commodity.
OR
At a given price of a commodity, there is excess demand. Is this price an equilibrium price? If not, how will the equilibrium price be reached? Use diagram.

Compare the effect of shift in demand curve on the equilibrium when the number of firms in the market is fixed with the situation when entry-exit is permitted.