Effects of Change in Demand On Equilibrium Increase in demand will shift the demand curve to the right keeping supply constant, it will lead to increase in equilibrium price and quantity and vice-versa . However,
(i)In case of perfectly elastic supply Increase or decrease in demand does not cause any change in equilibrium price. Only the equilibrium quantity changes, i.e. increases or decreases.
(ii)In case of perfectly inelastic supply Increase or decrease in demand does not cause any change in equilibrium quantity. Only the equilibrium price changes, i.e. increases or decreases.
Explain why an equilibrium price of a commodity is determined at that level of output at which its demand equals its supply.
State whether the following statement is true or false. Give reason.
When equilibrium price of a good is less than its market price, there will be competition among the sellers.
Explain the effects of a ‘price floor'. [CBSE Sample Paper 2014] Or
What are the effects of ‘price – floor' (minimum price ceiling) on the market of a good? Use diagram.
How will an increase in the income of buyers of an ‘inferior goods', affect its equilibrium price and equilibrium quantity? Explain with the help of a diagram. [CBSE 2006]
Under what condition increase in demand would not make any effect on equilibrium quantity?
What would be an effect on equilibrium price and quantity when demand and supply both shifts rightward?
Or
What would be an effect on equilibrium price and quantity when there is simultaneous increase in demand and supply? [AI 2008] Or
"If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease."Explain using diagrams.
Or [CBSE Sample Paper 2003]
Market for a good is in equilibrium. There is simultaneous "increase"both in demand and supply of the good. Explain its effect on market price. [CBSE 2012]
A severe drought results in a drastic fall in the output of wheat. Analyse how will it affect the market price of wheat?
Explain the changes that will take place when in a market the demand for a good is greater than supply at the prevailing price. (Delhi 2010 c)
Suppose the price of a good is higher than equilibrium price. Explain the changes that will establish equilibrium price. (Delhi 2009 c)
With the help of diagram, explain the effects of decrease in demand of a commodity on its equilibrium price and quantity. (Delhi 2009)
How is an equilibrium price of a commodity affected by a leftward shift of the demand curve? Explain it with the help of a diagram. (All India 2007)
What happens to equilibrium price of a commodity if there is an ‘increase' in its demand and decrease' in its supply?
Effects of Change in Demand On Equilibrium Increase in demand will shift the demand curve to the right keeping supply constant, it will lead to increase in equilibrium price and quantity and vice-versa . However,
Explain the sequence of changes that will take place when there is excess demand of the commodity.(All India 2011)
or
At a given price, there is an excess demand for a good. Explain how the equilibrium price will be reached. (Delhi 2007)
Market for a good is an equilibrium. There is simultaneous decrease both in demand and supply of the good. Explain its effects on market price. (Delhi 2012)
Market for good is an equilibrium.Explain the chain of reactions in the market if the price is(i) Higher than an equilibrium price (ii) Lower than an equilibrium price (All India 2012)
Give reasons for the following statements:
Explain the term market equilibrium. Explain the series of changes that will take place if market price is higher than an equilibrium price. (Delhi 2011 c)
Market for a good is in equilibrium. There is increase in demand for goods. Explain the chain of effects of this change. Use diagram.
Or [CBSE 2011] How does an increase in demand of a commodity affect its equilibrium price and equilibrium quantity? Explain with the help of a diagram.
Or ‘ [CBSE 2005]
How will equilibrium price and quantity be affected when there is rightward shift of demand curve? [CBSE 2004, 07C; AI 05]
Explain the effects of increase in income of buyers of normal commodity on its equilibrium price. (Delhi 2010)
What would be an effect on equilibrium price and quantity when demand and supply both increase at the same rate? [CBSE 08, 08C] Or
Explain with the help of a diagram a situation when demand and supply curves shift to the right but equilibrium price remains the same.
[AI 2007] Or
Market for a good is in equilibrium. What is the effect on equilibrium price and quantity if both the market demand and the market supply of the goods increase in the same proportion? Use diagram. [CBSE 2008]
Market of a commodity is in equilibrium. Demand for the commodity ‘increases.’ Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram. (Delhi 2014; All India 2014)
How is an equilibrium price and an equilibrium quantity of a normal commodity is affected by an increase in an income of the buyers? Explain with the help of a diagram. (Delhi 2006)
Market for a good is in equilibrium. There is decrease in demand for this good. Explain the chain of effects of this change. Use diagram.
Or
How will equilibrium price and quantity be affected when there is decrease in demand? Explain with diagram. [CBSE 04C, 06C, 09]
Or
How will equilibrium price and quantity be affected when there is leftward shift of demand curve?
Or [AI 2004]
Explain the chain effects on demand, supply and price caused by leftward shift of demand curve.
Or [CBSE 2005 C] Market for a good is in equilibrium. The demand for the good ‘decreases'. Explain the chain of effects of this change. [CBSE 2015 Set(2)]
How does an equilibrium price of a normal commodity change when income of its buyers falls? Explain the chain of effects. (All India 2010)
or
A product market is in an equilibrium. Suppose the demand for the product decreases. What changes will take place in the market? Use diagram. (Delhi 2006 C)
What is excess demand for a good in a market? Explain its chain of effects on the market for that good use diagram.(Foreign, 2014)
How will a fall in the price of tea affects an equilibrium price of coffee? Explain the chain of effects (Delhi 2011 c)
If at a given price of the commodity there is excess supply, how will the equilibrium price be reached? Explain with the help of a diagram.
Or [CBSE 2004] How will equilibrium price be reached when there is excess supply? Explain with a diagram.
Or [CBSE 04, 06C, 07C]
Explain the series of changes that will take place if market price is higher than equilibrium price.
Or [CBSE 2011C alternative]
At a given price of a commodity there is excess supply. Is it an equilibrium price? If not, how will the equilibrium price be reached? (use diagram)
Or [CBSE 2006] Suppose price of a good is higher than equilibrium price. Explain changes that will establish equilibrium supply.
[CBSE 09]
How is the equilibrium price and equilibrium quantity of a normal commodity affected by an increase in the income of its buyers? Explain with the help of a diagram.
Or [CBSE 2006]
Explain the effect of increase in income of buyers of a ‘normal' commodity on its equilibrium price. [CBSE 2010]
What will be the effect on equilibrium price and equilibrium quantity, when:
Effects of Change in Supply On Equilibrium When there is change in supply, keeping demand constant, it will shift supply curve to the right. When supply increases it leads to fall in equilibrium price and rise in quantity, on the other hand, when supply decreases, supply curve will shift to the left, causing rise in price and fall in quantity. However,
The demand and supply of a commodity both decreases in the same proportion. Explain its effects on an equilibrium price and quantity with the help of a diagram.(All India 2008)
Market for a product is in equilibrium. Demand for the product decreases. Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram.(Delhi 2014, All India 2014)
Market for a good is in an equilibrium. Suppose supply decreases. Giving reasons,
explain its effects on equilibrium price and quantity. Use diagram.(Foreign 2014; Delhi 2009 C)