Page 2 - Home Assignment-Price determination

a. Price will decrease.
b. Price will increase.
c. Price will remain constant.

d. None of these.
8. Suppose consumer taste shifts in favour of 1
apples. As a result, equilibrium quantity will
____and equilibrium price will ______.
a. Increase, decrease
b. Decrease, increase
c. Decease, decrease

d. Increase, increase
9. Mention two situations in which an increase 1

in supply of a commodity will not affect its
equilibrium price?
10. When increase in demand = increase in 1
supply then equilibrium price will _____.

11 ________ refers to the minimun price , fixed 1
by the Government, which is above the
equilibrium price. (price floor / price ceiling)

12 Out of price floor and price ceiling which 1
concept is used by the Government to
control the prices of essential commodities.?
13. ____________ may create infationary 1

situation in the market.
(price ceiling / price floor)
14 Define price floor? 1

Short question 3 – 4 marks each
15. Distinguish between price floor and price 4
ceiling.
16. How the equilibrium price and quantity 4
demand for Good-X will be affected when
there is an increase in the price of Good-Y? It

is known that Good-X and Good-y are
complementary to each other.
17. How the equilibrium price and quantity of 4
coke will be affected when there is an
increase in price of Pepsi? Explain using
diagram.

18. Explain the effect on equilibrium price when 4