Market and Price Determination-Market Equilibrium (CBSE Class-12 Economics): Questions 10 - 13 of 13

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Question number: 10

» 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… (146 more words) …

Question number: 11

» 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… (65 more words) …

Question number: 12

» 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… (80 more words) …

Question number: 13

» 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… (111 more words) …

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