Ten rupees is the equilibrium price for good X- If government fixes price at Rs- 5 - there is-A- A shortageB- A surplusC- Excess supplyD- Loss

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Standard XI

Economics

Analyzing Changes in Equilibrium

Ten rupees is...

Question

Ten rupees is the equilibrium price for good X. If government fixes price at Rs. 5, there is:

A shortage

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A surplus

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Excess supply

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Loss

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Solution

The correct option is A
A shortage

If government fixes price at Rs. 5, then there will be a rise in demand for the product without a consequent shift in supply, leading to its shortage.

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Ten rupees is the equilibrium price for good X. If government fixes price at Rs. 5, there is:

The correct option is A A shortage If government fixes price at Rs. 5, then there will be a rise in demand for the product without a consequent shift in supply, leading to its shortage.

The correct option is A
A shortage

If government fixes price at Rs. 5, then there will be a rise in demand for the product without a consequent shift in supply, leading to its shortage.