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प्रश्न
Suppose the demand and supply equations of a commodity X in a perfectly competitive market are given by :
Qd = 1700 – 2P
Qs = 1300 + 3P
Calculate the value of equilibrium price and equilibrium quantity of the commodity X.
उत्तर
At the point of equilibrium, demand is equal to supply in a perfectly competitive market.
So, Qd = 1700 – 2P
Qs = 1300 + 3P
At point of equilibrium,
Qd = Qs
= 1700 – 2P = 1300 + 3P
= 1700 – 1300 = 3P + 2P
= 400 = 5P
400/5 = Pe
80 = Pe
Qe = 1700 – 2 (80)
= 1700 – 160
= 1540
The equilibrium price is equal to 80 and the equilibrium quantity is equal to 1540 units of a commodity X.
संबंधित प्रश्न
Determination of equilibrium price under perfect competition.
Explain the chain effects, if the prevailing market price is below the equilibrium price.
Giving reason, state whether the following statement is true or false.
When equilibrium price of a good is less than its market price, there will be competition among the sellers.
If the prevailing market price is above the equilibrium price, explain its chain of effects.
X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.
Explain the chain of an effect of excess demand of a good on it equilibrium price.
Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price.
Write explanatory answer.
Define perfect competition and explain price determination under perfect competition.
Define or explain the following concepts (Any THREE):
Effective demand
At what level of price do the firms in a perfectly competitive market supply when free entry and exit is allowed in the market? How is the equilibrium quantity determined in such a market?
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?
Define or explain the following concept:
Price discrimination
Define or explain the following concept:
Equilibrium price
State whether the following statement is TRUE and FALSE.
Under perfect competition, price is determined by equilibrium of demand and supply.
State whether the following statement is true or false. Give reasons for your answer :
When the equilibrium price is greater than the market price there will be excess supply in the market.
Answer the following question:
The market for a good is in equilibrium. How would an increase in an input price affect the equilibrium price and equilibrium quantity, keeping other factors constant? Explain using a diagram.
