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
The factor that causes a change in quantity supplied is
  • A
    Price of the substitute good
  • B
    Price of the complementary good
  • C
    Price of the given good
    Correct
  • D
    Price of the inputs
2
The factor that causes a change in demand is
  • A
    An improvement in technology
  • B
    Price of the substitute good
    Correct
  • C
    Price of the inputs
  • D
    Price of the given good
3
The factor that causes a change in supply is
  • A
    Price of the inputs
    Correct
  • B
    Price of the given good
  • C
    Price of the substitute good
  • D
    Price of the complementary good
4
A rise in the price of the complementary good leads to
  • A
    Shift of the demand and supply curves of the given good
  • B
    Contraction of the demand for the given good
    Correct
  • C
    Expansion of the supply curve of the given good only
  • D
    Shift of the demand curve of the given good only
5
An imposition of tax on a good leads to
  • A
    Shift of the demand curve of the given good only
  • B
    Rightward shift of the supply curve of the given good only
    Correct
  • C
    Shift of the supply curve of the given good only
  • D
    Movement of the demand and supply curves of the given good
6
A fall in the price of the good for a seller leads to
  • A
    Contraction of the supply curve of the given good only
    Correct
  • B
    Shift of the demand and supply curves of the given good
  • C
    Shift of the demand curve of the given good only
  • D
    Movement of the demand and supply curves of the given good
7
unfavorable change in the taste for a good leads to
  • A
    Contraction of the demand for the given good
    Correct
  • B
    Movement of the demand and supply curves of the given good
  • C
    Shift of the demand curve of the given good only
  • D
    Shift of the demand and supply curves of the given good
8
Market for a good is in equilibrium. An increase in demand for the good will
  • A
    Price is unaffected
  • B
    Raise the price
    Correct
  • C
    Lower the price
  • D
    Only quantity exchanged is affected
9
Market for a good is in equilibrium. A decrease in demand for the good will
  • A
    Raise the price
  • B
    Lower the price
    Correct
  • C
    Only quantity exchanged is affected
  • D
    Price is unaffected
10
Market for a good is in equilibrium. An increase in supply for the good will
  • A
    Only quantity exchanged is affected
  • B
    Raise the price
  • C
    Price is unaffected
  • D
    Lower the price
    Correct
11
Market for a good is in equilibrium. A decrease in supply for the good will
  • A
    Price is unaffected
  • B
    Only quantity exchanged is affected
  • C
    Raise the price
    Correct
  • D
    Lower the price
12
Market for a good is in equilibrium. An increase in demand for the good will
  • A
    Shift the demand curve
    Correct
  • B
    Move the supply curve
  • C
    Shift the supply curve
  • D
    Move the demand curve
13
Market for a good is in equilibrium. An increase in supply for the good will
  • A
    Move the supply curve
  • B
    Shift the supply curve
    Correct
  • C
    Shift the demand curve
  • D
    Move the demand curve
14
Market for a good is in equilibrium. An increase in the price of the good will
  • A
    Shift the demand curve
  • B
    None of these
  • C
    Shift the supply curve
  • D
    Move the demand curve
    Correct
15
Market for a good is in equilibrium. A decrease in price for the good will
  • A
    None of these
  • B
    Move the supply curve
    Correct
  • C
    Shift the supply curve
  • D
    Shift the demand curve