Market for a good is in equilibrium. There is decrease in supply for this good. Explain the chain of effects of this change. Use diagram.
[AI 2011] Or
Explain the chain effects of decrease in supply of a good on its price, supply and demand. [CBSE 2005C]
As given in the examination problem that market for a good is in equilibrium. So,-we assume that initial price is OP as shown in the given figure.
In the given figure price is on vertical axis and quantity demanded and supplied is on horizontal axis. But due to decrease in supply the supply curve shifts leftward from SS to S1S1. With new supply curve S1S1, there is excess demand at initial price OP because at price OP, supply is PB and demand is PA, so there is excess demand of AB at price OP.
Due to this excess demand competition among the consumer will rise the price. Due to this rise in price there is upward movement along the supply curve (Expansion in supply) from B to C and similarly, there is upward movement along the demand curve (Contraction in demand) from A to C. So, finally, equilibrium price rises from OP to OP1 and equilibrium quantity falls from OQ to OQ1 Conclusion
Due to decrease in supply,
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]
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]
With the help of diagram, explain the effects of decrease in demand of a commodity on its equilibrium price and quantity. (Delhi 2009)
Explain why an equilibrium price of a commodity is determined at that level of output at which its demand equals its supply.
At a given price of a commodity, there is an excess supply. Is it an equilibrium price? If not, how will an equilibrium price be reached? Use diagram.(Compartment 2014; All India 2006)
or
What is ‘excess supply of a good in a market? Explain its chain of effects on the market for that good. Use diagram. (Foreign, 2014)
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.
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,
With the help of demand and supply schedule, explain the meaning of excess demand and its effects on price of a commodity. (All India 2009)
What happens to equilibrium price of a commodity if there is ‘decrease' in its demand and increase' in its supply?
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]
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]
Under what condition increase in demand would not make any effect on equilibrium quantity?
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.
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)
What happens to equilibrium price of a commodity if there is an ‘increase' in its demand and decrease' in its supply?
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)
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)]
Effects of a Simultaneous Change in Demand and Supply on Equilibrium Price and Quantity
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 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 an increase in an income of the buyers of an inferior good, affect its equilibrium price and equilibrium quantity? Explain with the help of a diagram.(All India 2006)
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)
Using supply and demand curves, show how an increase in the price of shoes affects the price of a pair of socks and the number of pairs of socks bought and sold.
Or
How will a rise in price of complementary affect the equilibrium price of given commodity? Explain the chain of effects.
Explain the effects of a price ceiling'. [CBSE Sample Paper 2014] Or Explain the effects of maximum price ceiling' on the market of a good. Use diagram. [CBSE 2015]
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]
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)
Equilibrium price of an essential medicine is too high. Explain what possible steps can be taken to bring down an equilibrium price, but only through the market forces. Also explain the series of changes that will occur in the market.(All India 2013)
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)
A severe drought results in a drastic fall in the output of wheat. Analyse how will it affect the market price of wheat?
Under what condition increase in demand would not make any effect on equilibrium price?
If at a given price of the commodity there is excess demand, how will the equilibrium price be reached? Explain with the help of a diagram.
Or
[CBSE 2004] If equilibrium price of a good is greater than its market price, explain all the changes that will take place in the market. Use diagram.
[AI 2013] Or
Explain the changes that will take place in the market for a commodity if the prevailing market price is less than the equilibrium price. [CBSE Sample Paper 2011]
Market for a good is in equilibrium. There is increase in supply for this goods. Explain the = chain of effects of this change. Use diagram.
[AI2011]
Or
How will equilibrium price and quantity be affected when there is increase in supply?
Or [AI 2005]
Explain the chain effect of increase in supply of a good on its price, supply and demand. Use diagram. [CBSE 05]
Or
How does an increase in supply of a commodity affect its equilibrium price and equilibrium quantity? Explain with the help of a diagram.
[CBSE 2005, OS] Or
Market for a good is in equilibrium. Supply of the good ‘increases'. Explain the chain of effects of this change. [CBSE 2015, AI 2015]
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]
How is an equilibrium price of a commodity determined ?Explain with the help of demand and supply schedule(Delhi 2009)
or
Explain how market price of a good is determined.Use diagram(All India 2009 c)
or
How is price determined under perfect competition? Explain briefly(All India 2006)
Explain the effects of increase in income of buyers of normal commodity on its equilibrium price. (Delhi 2010)