When excess demand for a commodity is reduced to zero, what happens to the market price for that commodity? Option 1: Market price remains at equilibrium. Option 2: Market price remains at highest level. Option 3: Market price remains at an all-time low. Option 4: Market prices remain very volatile.

The answer is 'Market price remains at equilibrium.'. View full solution:

CUET Economics - When excess demand for a commodity is reduced to zero, what happens to the market price for that commodity? | PYQs + Solutions

CUET Economics 2026 11th May Shift 1

Micro

Easy

Market price remains at equilibrium.

Market price remains at highest level.

Market price remains at an all-time low.

Market prices remain very volatile.

✅ Correct Option: 1