Market Equilibrium Economics - Market Equilibrium

In case of excess demand, the market price will be -

In a perfectly competitive market the price of a product is determined by -

With a given supply curve a decrease in demand causes ________.

1. an overall decrease in price but an increase in equilibrium quantity.
2. an overall increase in price but a decrease in equilibrium quantity.
3. an overall decrease in price and a decrease in equilibrium quantity.
4. no change in overall price but a reduction in equilibrium quantity.

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

1. Large number of buyers and sellers.
2. Homogeneous product.
3. Freedom of entry and exit.
4. Absence of transport cost.

Which is the best example of monopoly market?

1. Communication market.
2. Indian railway.
3. Stock exchange.
4. OPEC (Oil Producing Export Countries).

When market price of a good is more than its equilibrium price, there is a situation of excess demand. (True/ False)

When equilibrium price of a good is less than its market price, there will be competition among sellers. (True/ False)

"To make the minimum price ceiling effective, it must be accompanied by rationing". True/ False. Justify your answer.

In "maximum price ceiling", the government fixes the price of a commodity lower than the equilibrium price. (True/ False)

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

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

The quantity bought and sold at the equilibrium price is called __________.

The price at which market demand and market supply of a commodity are equal refers to __________.

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

Differentiate between normal profit and supernormal profit under a Perfectly Competitive market.

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.

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

Why is the demand curve of a firm under monopolistic competition more elastic than under monopoly? Explain.

Why is the demand curve facing a monopolistically competitive firm likely to be very elastic?

Why a firm's demand curve indeterminates under oligopoly?

When do we say there is excess supply for a commodity in the market?

What would be an effect on equilibrium price and quantity when demand and supply both increase at the same rate?### Explain with the help of a diagram a situation when demand and supply curves shift to the right but equilibrium price remains the same.###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.

What would be an effect on equilibrium price and equilibrium quantity if demand and supply both fall at the same rate?###Market for a good is in equilibrium. There is simultaneous "decrease" both in demand and supply but there is no change in market price. Explain with the help of a schedule how is it possible.

What will happen if the price prevailing in the market is:

1. above the equilibrium price?
2. below the equilibrium price?

X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.

With the help of a diagram explain the effect of “decrease” in demand of a commodity on its equilibrium price and quantity.

When will (a) simultaneous increase and (b) simultaneous decrease in both demand and supply, not affect the equilibrium price? Explain with the help of diagrams.

What would be an effect on equilibrium price and quantity when demand and supply both shifts rightward?###What would be an effect on equilibrium price and quantity when there is simultaneous increase in demand and supply?###"If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease."### Market for a good is in equilibrium. There is simultaneous "increase"both in demand and supply of the good. Explain its effect on market price.

What would be an effect on equilibrium price and equilibrium quantity when demand and supply both shift leftward?

OR

There is simultaneously decrease in demand and supply of a commodity, when it will result in:

1. No change in equilibrium price (Case I).
2. A fall in equilibrium price. (Case III).

OR

Market for a good is in equilibrium. There is simultaneous "decrease" in both demand and supply of the goods. Explain its effect on market price.

What is price floor ?

Why is price ceiling resorted to by the government?

Why are patent rights granted?

Who determines price under perfect competition?

Which market form has the least number of producers?