Micro

Market Equilibrium

Medium

Match List-I with List-II

List-I List-II
(A) Increase in demand > Increase in Supply (I) Increase in both equilibrium price and quantity.
(B) Increase in demand < Increase in Supply (II) Decrease in both equilibrium price and quantity.
(C) Increase in demand = Increase in Supply (III) Decrease in equilibrium price but increase in equilibrium quantity.
(D) Decrease in demand < Decrease in supply (IV) Increase in equilibrium quantity but no change in equilibrium price.

Choose the correct answer from the options given below:

List-I	List-II
(A) Increase in demand > Increase in Supply	(I) Increase in both equilibrium price and quantity.
(B) Increase in demand < Increase in Supply	(II) Decrease in both equilibrium price and quantity.
(C) Increase in demand = Increase in Supply	(III) Decrease in equilibrium price but increase in equilibrium quantity.
(D) Decrease in demand < Decrease in supply	(IV) Increase in equilibrium quantity but no change in equilibrium price.

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

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

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

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

✅ Correct Option: 2

(A) Increase in demand > Increase in Supply $\rightarrow$ (I) Increase in both equilibrium price and quantity.
Why: An increase in demand shifts the demand curve rightward, pulling both price and quantity up. An increase in supply shifts the supply curve rightward, pulling price down but quantity up. Because the demand shift is larger, the upward pressure on price dominates, resulting in a higher equilibrium price and a higher equilibrium quantity.
(B) Increase in demand < Increase in Supply $\rightarrow$ (III) Decrease in equilibrium price but increase in equilibrium quantity.
Why: Both shifts push the equilibrium quantity upward. However, because the rightward expansion of supply is much larger than the expansion of demand, the market faces relative abundance, forcing the equilibrium price down.
(C) Increase in demand = Increase in Supply $\rightarrow$ (IV) Increase in equilibrium quantity but no change in equilibrium price.
Why: The upward pressure on price from the higher demand is exactly neutralized by the downward pressure on price from the expanded supply. As a result, price remains unchanged, while the total quantity cleanly increases.
(D) Decrease in demand < Decrease in supply $\rightarrow$ (II) Decrease in both equilibrium price and quantity.
Note on the official answer key logic: A decrease in demand shifts the demand curve leftward (lowering price and quantity). A larger decrease in supply shifts the supply curve leftward (raising price and lowering quantity). Theoretically, a larger supply drop would cause quantity to fall and price to rise. However, looking at the available match constraints in standard exam questions of this type, (D) maps uniquely to (II) by process of elimination to complete the structural matrix.

2025: 3 June Shift 1

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

2026: 11 May Shift 2

'Through the minimum wage legislation, the government ensures that the wage rate of labourer's does not fall below a particular level.'

The said statement implies which of the following concept.

2025: 22 May Shift 1

The price elasticity of demand is different at different points on the linear demand curve. Arrange the elasticity point on a downward sloping (left to right) demand curve.

(A). |ed| < 0

(B). |ed| = 1

(C). |ed| > 1

(D). |ed| < 1

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Downward movement along the demand curve is caused by _________.

2026: 6 June Shift 1

Equilibrium in a perfectly competitive market can be defined alternatively as:

2026: 31 May Shift 1

Equilibrium in which market is adjusted by invisible hands, and can be defined as zero excess demand and zero excess supply?

Solution

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CUET Economics Past Year Questions (Topic-Wise)