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 12
Define market equilibrium in the context of economics.
Describe the effect of an increase in supply on equilibrium price, assuming demand remains unchanged.
Describe the effect of simultaneous increase in both demand and supply on equilibrium price.
Explain the concept of excess supply with an example.
Explain the effect of a leftward shift in the supply curve on equilibrium price and quantity, assuming demand remains unchanged.
Explain the effect of a price floor set above the equilibrium price.
Explain the role of price mechanism in achieving market equilibrium.
Explain what happens in a market if the price is set above the equilibrium price.
If the demand for a commodity increases while supply remains constant, what will happen to the equilibrium price and quantity?
State the law of supply.
Suppose the demand and supply schedules for a commodity are as follows: At price ₹10, quantity demanded is 100 units and quantity supplied is 80 units. At price ₹12, quantity demanded is 90 units and quantity supplied is 90 units. What is the equilibrium price?
Suppose the demand for a product decreases and the supply increases at the same time. What will be the effect on equilibrium price?
Suppose the government sets a maximum price for onions below the equilibrium price. What is likely to happen in the market?
What is the effect on equilibrium price and quantity if both demand and supply decrease simultaneously?
When the market is not in equilibrium, what forces bring it back to equilibrium?
