Question

Equilibrium:

Question 1 options:

a)	occurs when the quantity demanded is equal to the quantity supplied.

b)	occurs when all the consumers are fully satisfied.

c)	can never occur in a capitalist economy.

d)	is also called the market-creating price.

The demand curve represents

Question 3 options:

	consumer's marginal opportunity cost
	producer's marginal opportunity cost
	consumer's marginal willingness to pay
	consumer's marginal propensityto consume

An effective price ceiling leads to:

Question 14 options:

a)	quantity supplied equal to quantity demanded.

b)	quantity demanded exceeding quantity supplied.

c)	quantity supplied exceeding quantity demanded.

d)	no impact on the market.

Answer 1

Ans.1- equilibrium occurs when the quantity demanded is equal to the quantity supplied.

At the equilibrium , quantity demanded = quantity supplied

Ans.2- consumer's marginal willingness to pay.

Ans.3- quantity demanded exceeding quantity supplied

Binding price ceiling is there when price is set below the equilibrium price. At that price , quantity demanded will exceed quantity supplied.

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