Chapter 5 – Market Equilibrium Market Equilibrium is a state of market where the demand for the commodity is equal to its supply. This chapter comprises of a wide range of concepts – a brief introduction to the topic ‘market equilibrium ‘ – its meaning and definition, Equilibrium price, Equilibrium quantity, excess demand, excess supply, non- variable industry, variable industry, price ceiling, price floor, effect of simultaneous change in demand and supply on Equilibrium price.
Frequently asked Questions on CBSE Class 12 Microeconomics Notes Chapter 5: Market Equilibrium
What is ‘Price ceiling’?
A price ceiling/price cap, is the highest point at which goods and services can be sold.
What is ‘Excess supply’?
It is a situation in which the market supply of a commodity is greater than the market demand for it, thus causing its market price to fall.
What is ‘Equilibrium price’?
The equilibrium price is where the supply of goods matches demand.