CUET Economics 2025 16 May Shift 1 PYQs

Suppose the Income of consumers in a market increase. How will this effect the equilibrium price of the commodity, assuming that it is a normal good?

(A) There is excess demand at the existing price.

(B) Rising price leads to contraction in demand and expansion in supply and a new equilibrium price is attained, which is higher than the initial price.

(C) The demand curve shifts rightward.

(D) There is upward pressure on the price and price starts rising.

Choose the correct answer from the options given below:

Price ceiling is one concept which provides safeguard to______

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: