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
Market for a good is in equilibrium. An increase in price for the good will
  • A
    Move the supply curve
    Correct
  • B
    Shift the demand curve
  • C
    move the supply curve
  • D
    Move the demand curve
2
Market for a good is in equilibrium. A decrease in price for the good will
  • A
    Move the supply curve
  • B
    Shift the supply curve
  • C
    Move the demand curve
    Correct
  • D
    Shift the demand curve
3
Change in the price of the given good leads to
  • A
    Movement of the demand and supply curves of the given good
    Correct
  • B
    Movement of the supply curve of the given good only
  • C
    Movement of the demand curve of the given good only
  • D
    Shift of the demand and supply curves of the given good
4
Change in the price of the substitute good leads to
  • A
    Shift of the supply curve of the given good only
  • B
    Shift of the demand curve of the given good only
    Correct
  • C
    Shift of the demand and supply curves of the given good
  • D
    Movement of the demand and supply curves of the given good
5
Change in the price of the complementary good leads to
  • A
    Shift of the demand curve of the given good only
    Correct
  • B
    Shift of the demand and supply curves of the given good
  • C
    Shift of the supply curve of the given good only
  • D
    Movement of the demand and supply curves of the given good
6
Change in the price of the other good for a seller leads to
  • A
    Movement of the demand and supply curves of the given good
  • B
    Shift of the demand curve of the given good only
  • C
    Shift of the demand and supply curves of the given good
  • D
    Shift of the supply curve of the given good only
    Correct
7
Change in the price of the factor inputs leads to
  • A
    Shift of the demand curve of the given good only
  • B
    Shift of the demand and supply curves of the given good
  • C
    Shift of the supply curve of the given good only
    Correct
  • D
    Movement of the demand and supply curves of the given good
8
Change in the technology leads to
  • A
    Movement of the demand and supply curves of the given good
  • B
    Shift of the demand and supply curves of the given good
  • C
    Shift of the supply curve of the given good only
    Correct
  • D
    Shift of the demand curve of the given good only
9
An improvement in the technology leads to
  • A
    Rightward shift of the demand curve of the given good only
  • B
    Shift of the demand and supply curves of the given good
  • C
    Movement of the demand and supply curves of the given good
  • D
    Rightward shift of the supply curve of the given good only
    Correct
10
When a market is in equilibrium it is a situation of
  • A
    Deficient demand
  • B
    Zero excess demand
    Correct
  • C
    Zero demand
  • D
    Excess demand
11
Under Perfect competition the equilibrium price may change without any change in demand and supply. It is
  • A
    May be
  • B
    True
  • C
    0
    Correct
  • D
    Can’t say
12
Under monopoly the equilibrium price may change without any change in demand and supply. It is
  • A
    False
  • B
    1
    Correct
  • C
    Can’t say
  • D
    May be
13
If the price prevailing in the market is above the equilibrium price the situation will be of
  • A
    Scarcity of resources
  • B
    Excess demand
  • C
    Deficient demand
    Correct
  • D
    Equilibrium
14
If the price prevailing in the market is below the equilibrium price the situation will be of
  • A
    Excess demand
    Correct
  • B
    Equilibrium
  • C
    Scarcity of resources
  • D
    Deficient demand
15
If the price of a substitute( Y) of good X increases, then the equilibrium price of good X will
  • A
    Increase
    Correct
  • B
    Remain constant
  • C
    Decrease
  • D
    Insufficient information