Related InterviewSolutions

• What is meant by viable industry? Explain with the help of a diagram.
• If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease." Explain by using diagrams.
• Suppose consumer taste shifts in favour of apples. As a result, equilibrium quantity will - and equilibrium price will -A. Increase, decreaseB. Decrease, increaseC. Increase, increaseD. Decrease, decrease
• The following diagram depicts the situation of : A. Excess SupplyB. Excess DemandC. Equilibrium ConditionD. None of these
• If the price of a commodity is below the equilibrium price, then quantity supplied is - than the quantity demanded. However, if the price is above in equilbirium price, then quantity supplied is - than the quantity demanded.A. Less, moreB. Less, lessC. More, lessD. More, More
• Explain the changes that will take place in the market when market price of a good is greater than its equilibrium price. Use diagram.
• Briefly discuss the meaning of "Price Floor" with the help of diagram.
• 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. OR Suppose there is a sudden increase in birth rate. The increase in population has raised the demand for shirts. At the same time, due to fall in price of cotton, the supply of shirts have also increased. How will it affect the equilibrium price and equilibrium quantity of shirts?
• The are 10,000 identical individual buyers in the market for commodity X, each with a demand fucntion given by Qdx=12-2Px and 1,000 indentical producers of commodity X, each with a supply function given by Qsx=20Px. (i) Find the market demand function and the market supply function for commodity X. (ii) Obtain the equilibrium price and equilibrium quantity. (iii) Suppose the government decides to collect a tax of rupee 2 per unit sold from each of the 1,000 sellers of commodity X. What effect will this have on the equilibrium price and quantity of commodity X?
• 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 x is a normal good for its consumers. Their income increases. Explain its chain of effects on equlltbrium price, demand and supply of X. (use diagram)