Page 1 - Home Assignment-Price determination

Home Assignment

XI-Economics (030)

Economics: Price Determination

Question No Value point Marks allotted
1. When market demand is more than market 1

supply, it refers to a situation of__________.
a. Excess supply
b. Equilibrium level

c. Excess demand
d. None of these.
2. Equilibrium price is determined when: 1
a. Market demand for a commodity is

zero.
b. Market supply for a commodity is
zero.

c. Market demand and market supply
are equal.
d. Market demand is either greater
than or less than market supply.

3. The price at which market demand is equal 1
to market supply is called _________price.
4. If the price of a commodity is below the 1

equilibrium price, then quantity supplied is
______than the quantity demanded.
However, if the price is above the
equilibrium price, then quantity supplied is

_______than the quantity demanded.
5. In a commodity market, excess demand 1
exists when market price is greater than the

equilibrium price. (True / False)
6. When actual price of a commodity is less 1
than equilibrium price, its price starts rising.
(True/False)
7. If supply of the product is perfectly elastic 1
then with the decrease in demand: -