Market Equilibrium

Q.

How does technology affect supply and demand?

Q.

What is meant by distribution?

Q.

How is the price determined in a perfectly competitive market with a fixed number of firms?

Q.

What is market equilibrium and how is it determined?

Q.

When do we say there is excess supply for a commodity in the market?

Q.
What is meant by market equilibrium?
or
Define market equilibrium.

Q.

What happens to supply when the price increases?

Q. Explain how price is determined in a perfectly competitive market with fixed number of firms.

Q.

When Prices Are Free to Adjust Over Time in the Long Run the Market Price of a Good Tends to?

Q.
Under perfect competition, equilibrium price is determined by the forces of market demand and market supply.

1. True
2. False

Q. Attainment of equilibrium in a market is dependent on which basic component?

1. Price
2. Firm
3. All of the above
4. Industry

Q. Market demand curve for "Giffen" commodities may also be considered a normal good instead because _____________.

1. it may not be Giffen good for all the consumers
2. new buyers may enter the market with fall in prices
3. it could be Giffen good for a small section of society
4. all of the above

Q. What is the shape of the demand curve faced by a firm under perfect competition?

1. Positively sloped
2. Negatively sloped
3. Vertical
4. Horizontal

Q. In which market structure is the demand curve of the market represented by the demand curve of the firm?

1. Duopoly
2. Monopoly
3. Oligipoly
4. Perfect Competition

Q. Which of the following is defined as branch of economic analysis that studies the economic behaviour of the individual unit, a particular household, or a particular firm?

1. Macro economics
2. National economics
3. Micro economics
4. General economics

Q. As per the law of equi-marginal utility, the consumer's equilibrium will change if there is a change in:

1. His total expenditure

2. Marginal utility schedule of any good

3. Price of any good

1. 3 but not 1 and 2
2. 1 but not 2 and 3
3. 1 and 3
4. 1, 2 and 3

Q. A perfectly competitive firm's demand curve is __________.

1. downward sloping
2. perfectly inelastic
3. the same as the market demand curve
4. the same as the firm's marginal revenue curve.

Q. Kinked demand curve is related to _______.

1. monopoly
2. pure competition
3. oligopoly
4. none of these

Q. It is because of high degree of interdependence that firm's demand curve remains indeterminate under oligopoly. Comment.

Q. The kinked demand curve is used to __________.

1. illustrate the difference between pure and differentiated oligopoly
2. explain the stability of oligopolistic prices
3. explain the prevalence of oligopoly in American industry
4. illustrate the linear programming problem faced by the firm