Market Equilibrium CBSE Questions & Answers

Market Equilibrium

This is Economics Class 12 Market Equilibrium CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
An increase in demand imply an increase in quantity but no change in price if
  • A
    Supply is unitary elastic
  • B
    Supply is perfectly elastic
    Correct
  • C
    Supply is less elastic
  • D
    Supply is perfectly inelastic
2
An increase in supply imply an increase in price but no change in quantity if
  • A
    Supply is perfectly elastic
  • B
    Supply is perfectly inelastic
    Correct
  • C
    Supply is unitary elastic
  • D
    Supply is less elastic
3
An increase in supply imply an increase in quantity but no change in price if
  • A
    Supply is perfectly elastic
    Correct
  • B
    Supply is less elastic
  • C
    Supply is unitary elastic
  • D
    Supply is perfectly inelastic
4
What will happen to equilibrium price when demand is perfectly elastic and supply increases?
  • A
    None of these
  • B
    Equilibrium price remains same
    Correct
  • C
    Equilibrium price will rise
  • D
    Equilibrium price will fall
5
If the price of a substitute( Y) of good X increases, then the equilibrium quantity exchanged of good X will
  • A
    Decrease
  • B
    Remain constant
  • C
    Increase
    Correct
  • D
    Insufficient information
6
What will happen to equilibrium price when demand for the good increases?
  • A
    Equilibrium price will rise
    Correct
  • B
    None of these
  • C
    Equilibrium price remains same
  • D
    Equilibrium price will fall
7
What will happen to equilibrium price when supply for the good increases?
  • A
    Equilibrium price will fall
    Correct
  • B
    None of these
  • C
    Equilibrium price remains same
  • D
    Equilibrium price will rise
8
During excess demand
  • A
    Competition in the government start
  • B
    Competition among exporters start
  • C
    Competition among buyers start
    Correct
  • D
    Competition among sellers start
9
The factor that causes a change in demand is
  • A
    Income of the consumer
    Correct
  • B
    Price of the inputs
  • C
    An improvement in technology
  • D
    Price of the given good
10
The factor that causes a change in supply is
  • A
    Price of the substitute good
  • B
    An improvement in technology
    Correct
  • C
    Price of the given good
  • D
    Price of the complementary good
11
Market for a good is in equilibrium. A decrease in demand for the good will
  • A
    Shift the supply curve
  • B
    Move the supply curve
  • C
    Shift the demand curve
  • D
    Move the demand curve
Answer
Not Available
12
Market for a good is in equilibrium. A decrease in supply for the good will
  • A
    Shift the supply curve
    Correct
  • B
    Move the demand curve
  • C
    Move the supply curve
  • D
    Shift the demand curve
13
Given the market equilibrium of a good. The effect of a simultaneous increase in both demand and supply of that good can be a rise in price if a change in
  • A
    supply is not greater than the change in Demand
    Correct
  • B
    supply is greater than the change in Demand
  • C
    supply is equal to the change in Demand
  • D
    supply is less than the change in Demand
14
Given the market equilibrium of a good. The effect of a simultaneous increase in both demand and supply of that good can be a rise in price if a change in
  • A
    Demand is equal to the change in supply
  • B
    Demand is not greater than the change in supply
    Correct
  • C
    Demand is less than the change in supply
  • D
    Demand is greater than the change in supply
15
The equilibrium price will not change for a good if the demand is inelastic. It is
  • A
    True
  • B
    These are not related
  • C
    Can't say
  • D
    False
    Correct