Analyzing Changes in Equilibrium

Q.

What shifts the supply curve?

Q. Which of the following statements are correct with regard to firm's equilibrium under perfect competition?
(i) MR = MC
(ii) MC curve cuts the MR curve from below
(iii) TR = TC
(iv) MR = AR

1. i & ii
2. ii & iii
3. i, ii, iii and iv
4. iii & iv

Q. Increasing returns to scale is not caused by _________________.

1. marketing economies
2. varying factor proportions
3. technological advancement
4. specialisation of labor

Q. What do you understand by consumer's equilibrium? Explain consumer's equilibrium in case of a single commodity.

Q. Choose the word/phrase which is opposite in meaning to the italicized bold word/phrase in the sentence.
The government is taking measures to augment the country's food supply.

1. decrease
2. compensate
3. prohibit
4. surpass

Q. What is meant by consumer's equilibrium? State its condition in case of a single commodity.

Q. We mainly study the following in Micro-Economics:

1. General price level
2. National income and output
3. Location of industry
4. Employment and economic growth

Q. State whether the following statement is True or False:
Under perfect competition, price is determined by equilibrium of demand and supply.

1. True
2. False