Advertisements
Advertisements
प्रश्न
X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.
उत्तर
Demand for a commodity X in relation to the price of a complementary good Y:
An increase or decrease in the prices of complementary goods inversely affects the demand for the given commodity. Assume X and Y as two complementary goods, the price of good Y falls, it will lead to a rise in the demand for good X. As the price of good Y falls, the demand curve shift from the equilibrium position and move towards leftwards from D1 to D2.
APPEARS IN
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.
Explain the chain of effects of excess supply of a good on its equilibrium price
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.
Equilibrium price of an essential medicine is too high. Explain what possible steps can be taken to bring down the equilibrium price but only through the market forces. Also explain the series of changes that will occur in the market.
Write explanatory answer.
Define perfect competition and explain price determination under perfect competition.
Define or explain the following concepts (Any THREE):
Effective demand
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
State whether the following statement is TRUE and FALSE.
Under perfect competition, price is determined by equilibrium of demand and supply.
Fill in the blank with appropriate alternative given below
The price at which demand and supply equate to each other is called _______ price.
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.
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.
