Question

XI ECONOMICS-MARKET EQUILIBRIUM

1. What are market forces?

2. What is market equilibrium?

3. What is excess demand?

4. Explain the reactions that take place in a market in a situation of excess supply.

5. Market for a good is in equilibrium. The price of its substitute falls. What effect will it have

on the equilibrium?

6. Market for a good is in equilibrium. Government imposes new tax on the good. What effect

will it have on the equilibrium?

7. There is a simultaneous fall in the demand and supply of a commodity. Explain its effect on

market equilibrium.

8. The demand and supply for a commodity increases .However there is no change in the

equilibrium price. How is it possible?

9. What is price ceiling? Explain its effect on the market.

10. What is black marketing?

Answer 1

1- the economic factors affecting the price of,d and for & availability of commodity