Micro

Market Equilibrium

Medium

When both the demand and supply curves shift to indicate an increase in demand and supply in the same proportion. Then:

Only equilibrium price remains unchanged.

Only equilibrium quantity remains unchanged.

Equilibrium price remains unchanged but equilibrium quantity decreases.

Equilibrium price remains unchanged but equilibrium quantity increases.

✅ Correct Option: 4

Option 1 -> Incomplete statement as it doesn't specify what happens to equilibrium quantity.

Option 2 -> Incorrect. When both curves shift proportionally, quantity changes significantly.

Option 3 -> Incorrect. While price remains unchanged, quantity should increase, not decrease.

Option 4 -> When demand increases, it puts upward pressure on price and increases quantity. When supply increases, it puts downward pressure on price and increases quantity. If both shift in the same proportion, the price effects cancel out (leaving price unchanged), while the quantity effects reinforce each other (increasing quantity).

Hence, Option 4: Equilibrium price remains unchanged but equilibrium quantity increases -> When both demand and supply increase proportionally, the upward pressure on price from demand increase is exactly offset by the downward pressure from supply increase, keeping price constant. However, both shifts work in the same direction for quantity - demand shift increases quantity demanded and supply shift increases quantity supplied - resulting in a higher equilibrium quantity at the same price level -> correct

2025: 3 June Shift 2

If the government fixed maximum price of product below the market price then product will have?

2025: 28 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Price elasticity of demand will be equal to1	(I) When expenditure increases with a rise in price.
(B) Price elasticity of demand will be equal to 0	(II) When expenditure decreases with a rise in price.
(C) Price elasticity of demand will be more than 1	(III) When the quantity demanded doesn't change with the change in price.
(D) Price elasticity of demand will be less than1	(IV) When expenditure doesn't change with the change in price.

Choose the correct answer from the options given below:

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

2025: 2 June Shift 1

An upward sloping straight line supply curve shooting from the X axis indicates the:

2026: 11 May Shift 2

With the free entry of a new firm there will be a shift in the demand curve. How does that shift in the demand curve affect the equilibrium price?

2025: 29 May Shift 1

Identify the correct sequence of events when a minimum support price is imposed:

(A) Government buys the surplus at the predetermined price.

(B) Situation of Surplus occurs due to imposition of floor price.

(D) Market equilibrium occurs by the intersection of demand and supply curves.

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Arrange the following statements in correct sequence to determine the market equilibrium when the number of firms is fixed.

(A) There is excess demand in the market.

(B) Quantity demanded falls due to law of demand and quantity supplied increases due to law of supply(keeping other factors constant)

(D) The market moves towards the point where the quantity that the firms want to sell is equal to the quantity that the consumers want to buy.

Choose the correct answer from the options given below:

When both the demand and supply curves shift to indicate an increase in demand and supply in the same proportion. Then:

Solution

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CUET Economics Past Year Questions (Topic-Wise)