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.
If the equilibrium price of a good is ₹50 and the government imposes a price ceiling of ₹40, what will be the likely outcome? (1) Surplus, (2) Shortage, (3) Equilibrium, (4) No effect
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 government sets a maximum price for onions below the equilibrium price. What is likely to happen in the market?
A price ceiling set below the equilibrium price will result in (1) Surplus, (2) Shortage, (3) Equilibrium, (4) No effect
If both demand and supply increase simultaneously, what can be said about the equilibrium quantity? (1) It will increase, (2) It will decrease, (3) It will remain unchanged, (4) Cannot be determined without more information
If the equilibrium price of a good is ₹50 and the government imposes a price ceiling of ₹40, what will be the likely outcome? (1) Surplus, (2) Shortage, (3) Equilibrium, (4) No effect
If the government imposes a price floor below the equilibrium price, what will be its effect? (1) Surplus, (2) Shortage, (3) No effect, (4) Increase in demand
A decrease in supply, with demand remaining constant, will lead to a _______ in equilibrium price.
At equilibrium price, there is _______ between quantity demanded and quantity supplied.
Fill in the blank: If the government fixes the price of wheat below the equilibrium price, there will be a _______ of wheat in the market.
Fill in the blank: The _______ price is the price at which the plans of buyers and sellers are fully coordinated.
State whether the following statement is true or false: Market equilibrium can exist at any price.
State whether the following statement is true or false: The equilibrium price is always fair to both buyers and sellers.
True or False: A decrease in demand, with supply constant, will lower the equilibrium price.
True or False: A rightward shift in the demand curve, with supply constant, will increase both equilibrium price and quantity.
