CUET Economics - The market determined price of a good is Rs. 40.The government fixes the minimum price of the good as Rs. 50. Calculate the excess demand/excess supply it will cause if the demand and supply functions are Qd = 200 – p and Qs = 120 + p respectively. | PYQs + Solutions

CUET Economics 2025 21 May Shift 1

Micro

Medium

Excess demand of 20 units.

Excess supply of 20 units.

Excess demand for 50 units.

Excess supply of 30 units.

✅ Correct Option: 2

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(A) Excess of market demand over market supply will cause excess demand situation.

(B) Quantity demanded will fall and quantity supplied will rise.

(C) The market will move towards the point where the quantity that the firm wants to sell is equal to the quantity that the consumer wants to buy.

(D) The market price would tend to increase, due to competition among buyers.

Choose the correct answer from the options given below:

CUET Economics 2025 21 May Shift 1 PYQs

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