Class 12 Micro Economics - Chapter Market Equilibrium NCERT Solutions | What will happen if the price prevailing

How will a change in the price of coffee affect the equilibrium price of tea? Explain the effect on equilibrium quantity also through a diagram. 

Suppose the price at which the equilibrium is attained in exercise 5 is above the minimum average cost of the firms constituting the market. Now if we allow for free entry and exit of firms, how will the market price adjust to it?

When do we say that there is an excess demand for a commodity in the market?

Suppose the market determined rent for apartments is too high for common people to afford. If the government comes forward to help those seeking apartments on rent by imposing control on rent, what impact will it have on the market for apartments?

When do we say that there is an excess supply for a commodity in the market?

In what respect do the supply and demand curves in the labor market differ from those in the goods market?

Explain market equilibrium.

If the price of a substitute Y of good X increases, what impact does it have on the equilibrium price and quantity of good X?

Explain how price is determined in a perfectly competitive market with a fixed number of firms.

How is the optimal amount of labor determined in a perfectly competitive market?

Explain the concept of a production function

What would be the shape of the demand curve so that the total revenue curve is?

(a) A positively sloped straight line passing through the origin?

(b) A horizontal line?

Discuss the central problems of an economy.

What are the characteristics of a perfectly competitive market?

What do you mean by the budget set of a consumer?

What is the total product of input?

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

What do you mean by the production possibilities of an economy?

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

What is budget line?

If a consumer has monotonic preferences, can she be indifferent between the
bundles (10, 8) and (8, 6)?

Explain price elasticity of demand.

How does the budget line change if the price of good 2 decreases by a rupee
but the price of good 1 and the consumer’s income remain unchanged?

What are the characteristics of a perfectly competitive market?

When does a production function satisfy constant returns to scale?

Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2
if she spends her entire income. The prices of the two goods are Rs 6 and Rs 8
respectively. How much is the consumer’s income?

What do the long-run marginal cost and the average cost curves look like? 

What is the total product of input?

What is the supply curve of a firm in the long run?

What does the price elasticity of supply mean? How do we measure it?