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
_____________ is the price at which demand for a commodity is equal to its supply?
  • A
    Equilibrium price
    Correct
  • B
    Short run price
  • C
    Secular price
  • D
    Normal price
2
Equilibrium price may or may not change with shifts in both demand and supply curve.
  • A
    No
  • B
    Yes
    Correct
  • C
    May not change only
  • D
    Only may change
3
Excess demand is a situation when
  • A
    Market demand is less than market supply
  • B
    Market demand is equal to market supply
  • C
    Market demand is greater than market supply
    Correct
  • D
    individual demand is greater than individual supply
4
Deficient demand is a situation when
  • A
    Market demand is equal to market supply
  • B
    individual demand is greater than individual supply
  • C
    Market demand is less than market supply
    Correct
  • D
    Market demand is greater than market supply
5
During excess demand
  • A
    Market price is lower than the equilibrium price
  • B
    Market price is same as the equilibrium price
  • C
    Market price is higher than the equilibrium price
    Correct
  • D
    None of these
6
Deficient demand
  • A
    None of these
  • B
    Market price is higher than the equilibrium price
  • C
    Market price is lower than the equilibrium price
    Correct
  • D
    Market price is same as the equilibrium price
7
During deficient demand
  • A
    Competition among exporters start
  • B
    Competition among sellers start
    Correct
  • C
    Competition among buyers start
  • D
    Competition in the government start
8
After excess demand
  • A
    Market price remains the same
  • B
    Market price rise
    Correct
  • C
    Market price falls below the equilibrium price
  • D
    Market price fall
9
ring deficient demand
  • A
    Market price rise
  • B
    Market price fall
    Correct
  • C
    Market price remains the same
  • D
    Market price falls below the equilibrium price
10
Excess demand occurs when
  • A
    Market price fall below the equilibrium price
    Correct
  • B
    Market price falls below the equilibrium price
  • C
    Market price rise higher than the equilibrium price
  • D
    Market price remains the same
11
Deficient demand occurs when
  • A
    Market price rise higher than the equilibrium price
    Correct
  • B
    Market price fall below the equilibrium price
  • C
    Market price falls below the equilibrium price
  • D
    Market price remains the same
12
At Equilibrium price
  • A
    Buyers and sellers are able to exchange goods
    Correct
  • B
    Only the buyers are able to exchange goods
  • C
    Buyers and sellers are not able to exchange goods
  • D
    Only the sellers are able to exchange goods
13
The equilibrium price is determined by
  • A
    Supply only
  • B
    The Government
  • C
    Demand only
  • D
    Demand and supply
    Correct
14
Market equilibrium is a situation when
  • A
    Market Demand equals market supply
    Correct
  • B
    Market demand is less than market supply
  • C
    Market demand is greater than market supply
  • D
    None of these
15
The factor that causes a change in quantity demanded is
  • A
    Price of the complementary good
  • B
    Price of the inputs
  • C
    Price of the given good
    Correct
  • D
    Price of the substitute good