CUET Economics - Micro - Market Equilibrium | Free Questions - Page 4

Q1:

2025: 15 May Shift 1

Micro

>

Market Equilibrium

Medium

Suppose there is a market consisting of identical firms producing the same quality of salt.

Suppose the market demand curve and the market supply curve for salt are given by:

$Q_D = \begin{cases} 350 - p & \text{for } 0 \leq p \leq 350 \\ 0 & \text{for } p > 350 \end{cases}$

$Q_S = \begin{cases} 220 + p & \text{for } p \geq 10 \\ 0 & \text{for } 0 \leq p < 10 \end{cases}$

Where $Q_D$ and $Q_S$ denote the demand for and supply of salt (in kg) respectively and $p$ denotes the price of salt per kg in rupees.

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

$p - 35$

$p - 70$

$2(p - 35)$

$2(35 - p)$

Correct Answer

Option 3

Correct Answer

Explanation

Q2:

2025: 15 May Shift 1

Micro

>

Market Equilibrium

Medium

Suppose there is a market consisting of identical firms producing the same quality of salt.

Suppose the market demand curve and the market supply curve for salt are given by:

$Q_D = \begin{cases} 350 - p & \text{for } 0 \leq p \leq 350 \\ 0 & \text{for } p > 350 \end{cases}$

$Q_S = \begin{cases} 220 + p & \text{for } p \geq 10 \\ 0 & \text{for } 0 \leq p < 10 \end{cases}$

Where $Q_D$ and $Q_S$ denote the demand for and supply of salt (in kg) respectively and $p$ denotes the price of salt per kg in rupees.

If the government imposes a price ceiling of Rs 31 on salt, what will be the volume of excess demand/ supply in the market?

Excess demand of 68 units.

Excess supply of 68 units.

Excess demand of 330 units.

Excess supply of 220 units.

Correct Answer

Option 1

Correct Answer

Explanation

Q3:

2025: 14 May Shift 1

Micro

>

Market Equilibrium

Medium

Identify the options which reflect the impact of simultaneous shifts of demand and supply on equilibrium

(A) When demand shift right and supply left, quantity may increase, decrease or remain unchanged but price decreases

(B) When demand and supply shift leftward, quantity decreases but price may increase, decrease or remain unchanged

(C) When demand and supply shift rightward, quantity increases but price may increase, decrease or remain unchanged

(D) When demand shift left and supply right, quantity may increases, decreases or remain unchanged but price decreases

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer

Option 4

Correct Answer

Explanation

Q4:

2025: 13 May Shift 2

Micro

>

Market Equilibrium

Medium

Arrange the following elasticity degrees along the demand curve in their ascending order.

(A) Elasticity (eD) = 1

(B) Elasticity (eD) > 1

(C) Elasticity (eD) < 1

(D) Elasticity (eD) = 0

Choose the correct answer from the options given below:

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(D), (C), (A), (B)

Correct Answer

Option 4

Correct Answer

Explanation

Q5:

2025: 13 May Shift 2

Micro

>

Market Equilibrium

Medium

When the price of a cricket ball is Rs10, let us assume that 200 cricket balls are produced in aggregate by the firms in the market. When the price of a cricket ball rises to Rs.30, let us assume that 1,000 cricket balls are produced in aggregate by the firms in the market. Calculate the elasticity of supply.

2

3

4

1

Correct Answer

Option 1

Correct Answer

Explanation

Q6:

2025: 13 May Shift 2

Micro

>

Market Equilibrium

Easy

Minimum support price of a foodgrain is the example of _______

Floor Pricing.

Price Ceiling.

Maximum retail Price.

Price Discrimination.

Correct Answer

Option 1

Correct Answer

Explanation

Q7:

2025: 13 May Shift 1

Micro

>

Market Equilibrium

Medium

Suppose an individual buy 30 bananas when its price is Rs. 10 per banana. When the price increases to Rs. 14 per banana, she reduces her demand to 24 bananas. In this case,what will be the price elasticity of demand?

0.3

0.2

0.5

0.4

Correct Answer

Option 3

Correct Answer

Explanation

Q8:

2023: 1 June Shift 1

Micro

>

Market Equilibrium

Medium

Increase in demand refers to :

Larger quantity demanded due to fall in own price of commodity

Larger quantity demanded due to fall in price of substitute goods

Larger quantity demanded due to rise in price of substitute goods

Larger quantity demanded due to rise in own price of commodity

Correct Answer

Option 3

Correct Answer

Explanation

Q9:

2023: 1 June Shift 1

Micro

>

Market Equilibrium

Easy

For a given demand function Y = 50 - 2P, the quantity demanded at P = Rs. 20 is :

5 units

10 units

0 units

50 units

Correct Answer

Option 2

Correct Answer

Explanation

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