CUET Economics: MicroMarket Equilibrium. Free, no login required.

Suppose the government sets a price for agricultural goods in the market. The market would react unless measures are taken by the government to maintain the price. Arrange the correct sequence for the procedure.

A. There would be excess supply in the market.

B. The government needs to buy the surplus at a pre-determined price.

C. The prices would fall.

D. Prices for agricultural goods are set higher than the market price by the government.

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Suppose, there is an increase in the income of the consumers, that shifts the demand curve to the right. What will be the change in the equilibrium condition?

If there is excess demand in the market, the price would tend to change. How would the demand change to bring the market back to the equilibrium?

Which one of the following formula is correct for the Marginal Revenue Product of the labor (MRP$_L$)?

Match List-I with List-II

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

The government imposed lower limit on the price that may be charged for a particular good or service is called?

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

Match the LIST-I with LIST-II

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If additional unit tax imposed on goods by the government, then how it will be affect the movement of supply curve?

Arrange the following statements with reference to the impact of government price regulations on goods within the framework of perfect competition:

A. Subsequently, Government sets minimum prices for these goods and services.

B. For certain goods and services, fall price below a particular level is not desirable.

C. Consequently, Government needs to buy the surplus at the predetermined price.

D. Thus, this leads to an excess supply the market.

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Match List-I with List-II

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

Identify the correct statement regarding government intervention in case of price control from the following.

Suppose the demand and supply curve of commodity X in a perfectly competitive market are given by:

$q_d = 700 - p$

$q_s = 500 + 3p$

Assume that the market consists of identical firms. What will be the equilibrium price for this commodity?

When demand of a commodity is equal to that of its supply in the market then the price of this commodity is called?

In the perfect competition, the government regulation on goods which results in the creation of a black market is called ?

Arrange the following statements in correct sequence to determine the market equilibrium when the number of firms is fixed.

(A) There is excess demand in the market.

(B) Quantity demanded falls due to law of demand and quantity supplied increases due to law of supply(keeping other factors constant)

(C) The market price would tend to increase.

(D) The market moves towards the point where the quantity that the firms want to sell is equal to the quantity that the consumers want to buy.

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The maximum retail price concept is an example of which of the following pricing?

What happens when both demand and supply curves shift rightwards simultaneously? Identify the correct statements from the following in this context.

(A) Qunatity will increase.

(B) Qunatity will decrease.

(C) Quantity will remain unchanged.

(D) Price may increase, decrease or remain unchanged.

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Match List-I with List-II

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Imposition of price ceiling below the equilibrium price leads to__________

With the free entry of a new firm there will be a shift in the demand curve. How does that shift in the demand curve affect the equilibrium price?

'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.

Excess demand and excess supply can be adjusted by the invisible hand to reach the ________________ .

When excess demand for a commodity is reduced to zero, what happens to the market price for that commodity?

If the government fixed maximum price of product below the market price then product will have?