Market Equilibrium and Price Determination
Economics ⇒ Markets and Price Determination
Market Equilibrium and Price Determination starts at 11 and continues till grade 12.
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See sample questions for grade 11
A market is in equilibrium at a price of Rs. 50 where quantity demanded and supplied are both 100 units. If the price rises to Rs. 60, quantity demanded falls to 80 units and quantity supplied rises to 120 units. What is the excess supply at Rs. 60?
Define market equilibrium in the context of economics.
Describe the effect of a government-imposed price ceiling on market equilibrium.
Describe the process by which a market moves towards equilibrium when there is excess demand.
Explain the effect of a decrease in input prices on the equilibrium price of a good, assuming demand remains unchanged.
Explain the effect of an increase in the price of a substitute good on the equilibrium price of a commodity.
Explain the effect of simultaneous increase in both demand and supply on equilibrium price.
Explain the term 'excess demand' with the help of a diagram.
Explain what happens in a market when the price is set above the equilibrium price.
If both demand and supply increase by the same proportion, what happens to the equilibrium price?
If the demand curve is perfectly inelastic, what happens to equilibrium price when supply decreases?
If the demand function is Qd = 500 - 5P and the supply function is Qs = 3P + 100, calculate the equilibrium quantity.
If the market demand and supply equations are Qd = 200 - 2P and Qs = 3P - 100, find the equilibrium price.
If the supply curve is perfectly elastic, what happens to equilibrium quantity when demand increases?
If the supply of onions increases due to a bumper crop, what is likely to happen to the equilibrium price, assuming demand remains unchanged?
State the law of demand.
Suppose the demand curve shifts to the left. What will happen to the equilibrium price and quantity?
Suppose the market for sugar is in equilibrium. If the government announces a subsidy for sugar producers, what is the likely effect on equilibrium price and quantity?
What is meant by 'price mechanism'?
