Test: Market Equilibrium - 1


10 Questions MCQ Test NCERT Textbooks (Class 6 to Class 12) | Test: Market Equilibrium - 1


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This mock test of Test: Market Equilibrium - 1 for UPSC helps you for every UPSC entrance exam. This contains 10 Multiple Choice Questions for UPSC Test: Market Equilibrium - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Market Equilibrium - 1 quiz give you a good mix of easy questions and tough questions. UPSC students definitely take this Test: Market Equilibrium - 1 exercise for a better result in the exam. You can find other Test: Market Equilibrium - 1 extra questions, long questions & short questions for UPSC on EduRev as well by searching above.
QUESTION: 1

This a MCQ (Multiple Choice Question) based practice test of Chapter 5 - Market Equilibrium of Economics of Class XII (12) for the quick revision/preparation of School Board examinations

Q  _____________ is the price at which demand for a commodity is equal to its supply?

Solution:

At equilibrium price quantity demanded and quantity supplied of a commodity are equal. This quantity is called the equilibrium quantity of the commodity. In practical life, the price at which the seller/firm wants to sell a commodity, its quantity supplied may be greater or lesser than its quantity demanded.

QUESTION: 2

Equilibrium price may or may not change with shifts in both demand and supply curve.

Solution:

Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.

QUESTION: 3

Excess demand is a situation when

Solution:
QUESTION: 4

Deficient demand is a situation when

Solution:
QUESTION: 5

During excess demand

Solution:

Excess demand refers to the situation when aggregate demand (AD) is more than the aggregate supply (AS) corresponding to full employment level of output in the economy. It is the excess of anticipated expenditure over the value of full employment output.

QUESTION: 6

Deficient demand

Solution:

Deficient demand refers to the situation when aggregate demand is short of aggregate supply corresponding to full employment level in the economy. Aggregate supply being perfectly elastic, it converges with aggregate demand at a lower level of output lower than the full employment level of output in the economy

QUESTION: 7

During deficient demand

Solution:

Excess Demand. When at the current price level, the quantity demanded is more than quantity supplied, a situation of excess demand is said to arise in the market. Excess demand occurs at a price less than the equilibrium price.

QUESTION: 8

After excess demand

Solution:

In case of excess demand, the demand of a commodity is more than its supply. SO in this case, there will be competition among consumers and every consumer tries to purchase more of a commodity by paying higher prices. This will tend price to rise.

Hence a) Market price rise

QUESTION: 9

Ring deficient demand

Solution:

Deficient demand refers to the situation when aggregate demand (AD) is less than the aggregate supply (AS) corresponding to full employment level of output in the economy. The situation of deficient demand arises when planned aggregate expenditure falls short of aggregate supply at the full employment level.

QUESTION: 10

Excess demand occurs when

Solution:

When at the current price level, the quantity demanded is more than quantity supplied, a situation of excess demand is said to arise in the market. Excess demand occurs at a price less than the equilibrium price.

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