Micro

Forms of Market

Medium

Match List-I with List-II

List-I List-II
(A) Control Price (I) Set below the equilibrium price
(B) Floor Price (II) Fixed by the government for the labourers
(C) Minimum Wage Legislation (III) Set above the equilibrium price
(D) Market Equilibrium (IV) when demand and supply curve intersect.

Choose the correct answer from the options given below:

List-I	List-II
(A) Control Price	(I) Set below the equilibrium price
(B) Floor Price	(II) Fixed by the government for the labourers
(C) Minimum Wage Legislation	(III) Set above the equilibrium price
(D) Market Equilibrium	(IV) when demand and supply curve intersect.

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 2

Option 2: (A) - (I), (B) - (III), (C) - (II), (D) - (IV) -> Let's match each term correctly:

(A) Control Price (Price Ceiling): This is a maximum price set by the government to protect consumers. It must be set below the equilibrium price to be effective, making goods more affordable. Example: rent control. Hence matches with (I).

(B) Floor Price (Price Floor): This is a minimum price set by the government to protect producers/sellers. It must be set above the equilibrium price to be effective, ensuring sellers receive a minimum income. Example: minimum support price for agricultural products. Hence matches with (III).

(C) Minimum Wage Legislation: This is a specific type of price floor that sets the minimum wage rate. It is fixed by the government for the labourers to ensure they receive a living wage. Hence matches with (II).

(D) Market Equilibrium: This occurs when quantity demanded equals quantity supplied, which happens when demand and supply curves intersect. At this point, there is no shortage or surplus. Hence matches with (IV).

Therefore, the correct matching is (A)-(I), (B)-(III), (C)-(II), (D)-(IV). -> correct

2025: 14 May Shift 1

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

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

2025: 27 May Shift 2

In a perfectly competitive market, the marginal revenue curve is?

2026: 12 May Shift 1

Choose the correct options from the following in respect of Break-even point(BEP) of a firm-

(A) BEP is a point of minimum AVC where the SMC curve cuts the AVC curve.

(B) BEP is a point on the supply curve at which a firm earns only normal profit.

(D) BEP is the point of minimum average cost at which the supply curve cuts the LRAC curve.

Choose the correct answer from the options given below:

2026: 21 May Shift 2

In a perfectly competitive market firms can enter and exit freely from the market, then the equilibrium price in this condition is always equal to?

2025: 27 May Shift 2

In a perfectly competitive market, a firm produces and sells a certain amount of goods. Among the following what reflect the firm's profit?

2025: 13 May Shift 1

Which of the following is an example of floor price?

Solution

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