CUET Economics 2025 27 May Shift 2 PYQs

Under perfect competition if firms earn supernormal profits. Arrange following statements to arrive at the implication of free entry and exit of firms

(A) Market price fall in such a manner that firms will be earning normal profits only and thus no more firms will have incentive to enter the market.

(B) Some new firms will enter the market

(C) At the prevailing market price, each firm is earning supernormal profit.

(D) Demand remains unchanged but the market supply curve shifts rightward

Arrange the stages of price determination in a perfect competition market:

(A) Estimate the market demand and supply.

(B) Firms adjust production to maximize profit.

(C) Equilibrium price is established.

(D) Short-run profit attracts new firms.

Choose the correct answer from the options given below:

Arrange the following money supply measures in chronological order.

(A) Excess supply will prevail in the economy.

(B) The tendency of prices to change to restore equilibrium.

(C) Suppose market supply is greater than market demand at a given price.

(D) Hence, the market is not in equilibrium.

Choose the correct answer from the options given below: