CUET Economics 2025 14 May Shift 1 PYQs

Let us consider the example of a market consisting of identical farms producing the same quality of wheat. Suppose the market demand curve and the market supply curve for wheat are given by: qᵈ = 200 - p and qˢ = 120 + p. What is the equilibrium price?

Which of the following are features of the perfect competition market?

(A) Price taking behavior of firms.

(B) Restriction on entry and exit of firms.

(C) Large number of sellers and buyers.

(D) Asymmetric Information.

Choose the correct answer from the options given below:

Identify the incorrect statement regarding price flooring:

1. It causes excess demand, which often leads to the problem of black marketing.
2. Price floor is the minimum price of a commodity in the market as fixed by the government.
3. Often, the government fixes this price higher than the equilibrium market price of a commodity.
4. It ensures stability of income to the producers.