_______ is the price at which demand, for a commodity is equal to is supply.

Normal price

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Equilibrium price

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Short run price

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Secular price

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Equilibrium price
Equilibrium price is the price at which the quantity demanded and the quantity supplied is the same. After equilibrium is achieved the price does not change. It is the ideal market price.

Suggest Corrections

Similar questions

Explain why the equilibrium price of a commodity is determined at that level of output at which its demand equals its supply?

Suppose the demand and supply curves of a commodity are given as:
$Y^{d} = 200 - p$
$Y^{s} = 120 + p$
(i) Find the equilibrium price and equilibrium quantity.
(ii) Also show that at a price of Rs. 30, there is excess demand and at a price of Rs. 45, there is excess supply.

Q.
How is the price of a commodity affected when its demand increases more than supply?

Q. When the price elasticity of demand for a commodity equals infinity, ______.

[1 mark]

Q. Identify two such situations when elasticity of supply is low even when there is a substantial rise in price due to rise in demand for a commodity.

Join BYJU'S Learning Program

_______ is the price at which demand, for a commodity is equal to is supply.

The correct option is C Equilibrium priceEquilibrium price is the price at which the quantity demanded and the quantity supplied is the same. After equilibrium is achieved the price does not change. It is the ideal market price.

The correct option is C Equilibrium price
Equilibrium price is the price at which the quantity demanded and the quantity supplied is the same. After equilibrium is achieved the price does not change. It is the ideal market price.