The Marshallian approach to price determination emphasizes that the equilibrium price is determined by the interaction of ___ and ___.

Demand and supply

True or False: The Jewel utility theory states that utility and price are inversely proportional.

False. The Jewel utility theory states that utility and price are directly proportional.

In the context of perfect competition, Alfred Marshall replaced the cost term with ___ in his price determination model.

Supply term

What is the significance of the intersection point of the demand and supply curves?

It represents the equilibrium price where the quantity demanded equals the quantity supplied.

Marshall's views on the supply curve suggest it can be of three types: downward sloping, horizontal, and ___ depending on the cost laws operating in the market.

Upward sloping

True or False: In the market period, the supply of the commodity is variable while the demand remains constant.

False. In the market period, the supply of the commodity is constant while the demand is variable.

During the short-run normal period, an increase in demand and supply will cause the price to ___ due to their direct proportionality.

Increase

The Walrasian approach to price determination asserts that the price of a commodity is influenced by ___ and ___.

The prices of other commodities and various supply factors

True or False: According to the Walrasian model, equilibrium price can be determined for a single commodity in isolation.

False; equilibrium price cannot be determined in isolation as it depends on multiple commodities.

In the factor market, the demand for labor is influenced by factors such as ___ and ___.

House rent and standard of living

The Law of One Price states that any transaction regarding a commodity should coincide with the price that has been ___ at the instant.

Quoted

True or False: In the Walrasian model, equilibrium price is characterized by uniqueness and stability.

False. The equilibrium price is described as a dynamic process, not characterized by uniqueness or stability.

What is the tatonnement process in the context of the Walrasian model?

Tatonnement adjusts markets to equilibrium.

• Dynamic adjustment in markets.

• Trials until market balance achieved.

• Critical for Walrasian equilibrium theory.

In the Marshallian approach, the price of a commodity in the short run is primarily determined by ___ while supply remains constant.

Demand

True or False: According to Walras, the demand for a commodity is solely determined by its own price.

False. Demand for a commodity is also affected by the prices of related and supplementary goods.

The normal price of a commodity is defined as the ___ of the market prices over a specified long run period.

Average