Market Equilibrium - Class 11 Commerce Economics - Extra Questions

Mention two reasons behind the leftward shift of a supply curve.

Price and supply of a commodity move in the same direction. Justify the statement.

Explain five determinants of shift in the supply curve.

Explain equilibrium price with the help of demand and supply curves.

Explain with reasons whether you agree or disagree with the following statement.
Increase and expansion in supply means the same.

Distinguish between:
Increase in demand and Decrease in demand.

Extension of supply and Contraction of supply.

Distinguish between:
Partial equilibrium and General equilibrium.

What is meant by price ceiling? Explain its implications.

If there is change in any other determinant of supply (other than own price of the concerned commodity), the supply curve must shift to the right or left. Do you agree? Give reason.

Can price of the commodity ever be zero?

Introduction of new technology increases marginal product. How would it affect supply curve of a firm?

How is the price of a commodity affected when its demand increases more than supply?

What will be the effect on equilibrium price and quantity of an increase in equal proportion of demand and supply of a commodity?

What is meant by price floor?

Define price ceiling.

Define support price policy.

What will be the effect of simultaneous change in demand and supply on price?

Explain through a diagram the effect of a rightward shift of both the demand and supply curves on equilibrium price and quantity.

Farmers may suffer a loss even when there is a good harvest. Does your supply-demand analysis provide an answer to this paradox?

Explain briefly the concept of equilibrium.

Do you agree with the view that the market absorbs the impact of increase or decrease in demand only through the process of 'extension and contraction of demand and supply? Given reason.

In a situation of constant demand, equilibrium quantity does not change even when supply increases or decreases. 

How do the equilibrium price and quantity of a commodity change when price of input used in its production changes?

How are equilibrium price and quantity affected when income of the consumers increase and  decrease?

What do you understand by equilibrium price? How do the forces of demand and supply determine the equilibrium price?

How does improvement in technology and the consequent decline in production cost affect market equilibrium?

What will be the effects of a decrease in both the market demand and supply of a commodity on its price? Explain.

What can be the effects on the equilibrium price of a commodity when its demand and supply curves both shift to the right simultaneously?

Show withe the help of diagrams, the effect on equilibrium price and quantity when:
(i) demand is perfectly elastic and supply decreases.
(ii) supply is perfectly elastic and demand increases.

Market for a good is in equilibrium. What is the effect on equilibrium price and quantity if both market demand and market supply of the good increase in the same proportion? Use diagram.

At the given price of a commodity, there is excess supply. What changes will establish the equilibrium price? Explain with the help of a diagram.

Explain the impact of increase in the number of consumers on market equilibrium.

"If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease." 

Explain the distinction between "change in quantity supplied" and "change in supply". Use diagram.

What are the effects of price-floor (minimum price ceiling) on the market of a good? Use diagram. 

Explain the rationale behind the consition of equilibrium of a producer.

What is minimum price ceiling ? Explain its implications.

What is a factor market?

What is maximum price ceiling? On what type of goods is it normally imposed? Used diagram.

What is equilibrium point?

"Demand and supply are like two blades of a pair of scissors". Comment.

What is the definition of market equilibrium?

What do you mean by "producer's equilibrium"?

Write the assumptions for the producer's equilibrium.

What does the term "equilibrium quantity" mean?

Define producer's equilibrium "when price remains constant".

What do you mean by "price ceiling"?

Explain the effect of an increase in income of buyers of a "normal commodity" on its equilibrium price?

Give the meaning of equilibrium market price of good.

What do you mean by "excess demand"?

Explain the effect of the following on supply curve with the help of diagrams:
a. Increase in price of input.
b. Decrease in taxes.

What is the difference between consumer and producer's equilibrium?

What do you mean by "excess supply"?

Define supply. Explain three reasons for the rightward shift of the supply curve.

Answer the following question in $$20$$ sentences.
Explain the Market equilibrium with the fixed number of firms with the help of a diagram.

Suppose the demand and supply curves of salt are given by:
                     $$ { Q }_{ d }=1,000-p,\quad { Q }_{ s }=700+2p $$ 
(a) Find the equilibrium price and quantity.
(b) Now suppose that the price of an input used to produce salt has increased so that the new supply curve is:
                    $$ { Q }_{ s }=400+2p $$ 
How does the equilibrium price and quantity change? Does the change conform to your expectation?
(c) Suppose the government has imposed GST which raises the cost by $$Rs.3$$ per unit of output. How does it affect the equilibrium price and quantity?

Class 11 Commerce Economics Extra Questions