Market and Price Determination (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 33 - 40 of 40

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Question number: 33

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Define equilibrium price. How is it determined? Explain with the help of a schedule.

Explanation

The price equal to the market demand of a commodity with its market supply is the equilibrium price. Equilibrium price is determined at a point where market demand is equal to market supply.

Demand and supply schedules are given: -

Determination of Equilibrium Price

Price

( Rs. )

Quantity Demanded

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Question number: 34

» Market and Price Determination » Monopoly

Short Answer Question▾

Write in Short

Define monopoly

Question number: 35

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Given market equilibrium of a good, what are the effects of simultaneous increase in both demand and supply of that good on its equilibrium price and quantity?

Explanation

If increase in demand affects prices and quantities we assume that there is increase in income of working class.

Their demand for cloth This will raise the equilibrium price and quantity of cloth and the supply curve of cloth is unchanged in figure. It is to understand the increase in

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Question number: 36

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Explain the central problem of ‘choice of technique’.

Explanation

The problem of choice of technique is also known as the problem of how to produce. As resources are scarce and it has alternative uses the problem of choice of technique of production arises. There are two techniques of production:

1 Labor intensive technique: Labor intensive technique is used in

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Question number: 37

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

Explain the implications of the following:

(i) The feature ‘differentiated product’ under monopolistic competition.

(ii) The feature ‘large number of sellers’ under perfect competition.

Explanation

(i) The feature ‘differentiated product’ under monopolistic competition.

some generation in position to perform some degree of monopoly with product differentiation.

Product differentiation is based on differentiating the products on brand, color, size. The product of firm is close and it is not perfect substitute of other firm.

This implication

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Question number: 38

» Market and Price Determination » Market Equilibrium

Essay Question▾

Describe in Detail

At a given price there is excess demand for a good. Explain how the equilibrium price will be reached. Use diagram.

Explanation

Market equilibrium is a one type of situation of the market in which demand for a commodity is equal to its supply so, in a state of equilibrium the market is at equilibrium there is neither excess demand nor excess supply. In this type of situation the price in the

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Question number: 39

» Market and Price Determination » Perfect Competition

Essay Question▾

Describe in Detail

Explain the following: (I) ‘Free entry and exit’ feature of perfect competition, (ii) ‘Differentiated products’ feature of monopolistic competition.

Explanation

(i) ‘Free entry and exit’ feature of perfect competition

Answer: - Features of ‘free entry and exit’ is given below:

In many markets are featured by big cost of entry and exit. Cost of exiting an industry can add things as pay for workers and entry in market it contain

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Question number: 40

» Market and Price Determination » Perfect Competition

Essay Question▾

Describe in Detail

Explain the following features of perfect competition: (i) Large number of buyers and sellers (ii) Homogeneous products

Explanation

(i) Large number of buyers and sellers: -

Large number of buyers and sellers mention that number of sellers is large and single seller’s share in total market supply of the product. It has conclusion. The dominant market price is one it was set through the interaction of market demand

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