Excess Supply
It refers to the situation in which at a price in the market, supply is more than that of demand [SS>DD], which creats a downward pressure on price.
Explain why an equilibrium price of a commodity is determined at that level of output at which its demand equals its supply.
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.
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 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 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?
Under what condition increase in demand would not make any effect on equilibrium quantity?
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]
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)
With the help of diagram, explain the effects of decrease in demand of a commodity on its equilibrium price and quantity. (Delhi 2009)
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)
Give reasons for the following statements:
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,
Suppose the price of a good is higher than equilibrium price. Explain the changes that will establish equilibrium price. (Delhi 2009 c)
What happens to equilibrium price of a commodity if there is an ‘increase' in its demand and decrease' in its supply?
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)
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]
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]
Explain the effects of increase in income of buyers of normal commodity on its equilibrium price. (Delhi 2010)
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,
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)
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)]
What will be the effect on equilibrium price and equilibrium quantity, when:
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)
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)
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)
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)
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)
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.
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]
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]