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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A market is in equilibrium at a price of ₹50 and quantity of 100 units. If the government imposes a price ceiling of ₹40, what is likely to occur?
Define market equilibrium in the context of demand and supply.
Explain the concept of price mechanism in the context of market equilibrium.
Explain the difference between movement along a demand curve and a shift in the demand curve.
Explain the effect of an increase in input prices on the supply curve and market equilibrium.
Explain the effect on equilibrium price and quantity if there is a leftward shift in the demand curve, with supply remaining constant.
Explain what happens to the equilibrium price and quantity when there is an increase in demand, assuming supply remains constant.
If the demand for a commodity is perfectly inelastic, what will be the effect of a decrease in supply on equilibrium price and quantity?
If the government sets a minimum price above the equilibrium price, what is this called?
State the law of supply.
Suppose the demand and supply equations for a good are Qd = 100 - 2P and Qs = 20 + 3P. Find the equilibrium price and quantity.
Suppose the demand and supply schedules for a commodity are as follows: At price ₹10, quantity demanded is 50 units and quantity supplied is 70 units. At price ₹20, quantity demanded is 40 units and quantity supplied is 40 units. What is the equilibrium price?
Suppose the demand for tea increases due to a rise in consumer income. What will happen to the equilibrium price and quantity of tea, assuming supply is unchanged?
Suppose the government imposes a tax on sellers. What is the likely effect on the supply curve and equilibrium price?
Suppose the market for sugar is in equilibrium. If a new technology reduces the cost of production, what is likely to happen to the equilibrium price and quantity?
What is meant by 'excess supply'?
What is the effect on equilibrium price and quantity if there is a simultaneous increase in demand and decrease in supply?
What is the effect on equilibrium quantity if both demand and supply decrease simultaneously?
What is the likely effect on the market equilibrium if the government provides a subsidy to producers?
When does a surplus occur in a market?
