Market Equilibrium and Effects of Shifts in Demand and Supply
Economics ⇒ Consumer and Producer Behaviour
Market Equilibrium and Effects of Shifts in Demand and Supply starts at 11 and continues till grade 12.
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See sample questions for grade 11
Define 'excess demand' and explain its effect on price.
Define price floor.
Describe the process by which a market moves towards equilibrium when there is excess supply.
Explain the concept of 'market-clearing price'.
Explain the effect of a decrease in consumers’ income on the equilibrium price of a normal good.
Explain the effect of an increase in supply and a decrease in demand on equilibrium price.
Explain the effect of an increase in the price of a substitute good on the demand curve of a product.
Explain what happens to the equilibrium quantity when both demand and supply increase simultaneously.
If the demand for a good decreases and the supply remains constant, what happens to the equilibrium price and quantity?
If the market for wheat is in equilibrium and there is a sudden drought, what is likely to happen to the equilibrium price and quantity?
State the law of supply.
Suppose the demand for a product increases from 100 units to 150 units at the same price, while supply remains at 100 units. What is the result in the market?
Suppose the equilibrium price of rice is Rs. 40 per kg and the government sets a price floor at Rs. 50 per kg. What will be the likely result?
Suppose the supply of onions increases due to a bumper harvest, while demand remains unchanged. What will happen to the equilibrium price and quantity?
What happens to the equilibrium price if both demand and supply increase by the same proportion?
What is market equilibrium?
What is meant by 'excess supply'?
What is the effect of a rightward shift in the demand curve on the equilibrium price, assuming supply is unchanged?
