Micro

Market Equilibrium

Easy

In case of normal goods, rise in consumer's income will lead to:

Decrease in equilibrium quantity.

Constant equilibrium price.

Decrease in equilibrium price.

Increase in equilibrium price.

✅ Correct Option: 4

For a normal good, a rise in consumer income increases demand at every price, shifting the demand curve rightward while supply stays unchanged. The new equilibrium occurs at a higher price and higher quantity. So equilibrium price increases.

2025: 26 May Shift 2

Price ceilings are also known as............

2025: 13 May Shift 2

Minimum support price of a foodgrain is the example of _______

2025: 15 May Shift 1

Which of the following expressions will be used for calculating excess supply of salt in the market?

2025: 28 May Shift 2

A market where firms can choose where to locate production and workers can choose where to work is called?

2025: 15 May Shift 1

If price of a commodity rises from Rs. 10 to Rs. 15, its supply increases by 20%.

calculate the price elasticity of supply for this commodity.

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.

In case of normal goods, rise in consumer's income will lead to:

Solution

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