Worksheets › Class 12 › Market Equilibrium
Class 12 Market Equilibrium worksheet
CBSE Social Science. Equilibrium price and quantity, excess demand and supply, shifts, free entry and exit, wage = VMPL, price ceilings and floors. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
Market equilibrium is where:
- demand is greater than supply
- supply is greater than demand
- price equals zero
- market demand equals market supply
Answer
(d) market demand equals market supply
- 2.
With a fixed number of firms, what happens if supply falls, demand unchanged?
- quantity falls; price may go either way
- price falls; quantity may go either way
- price rises, quantity falls
- price rises; quantity may go either way
Answer
(c) price rises, quantity falls
- 3.
What is meant by “excess demand”?
- a legal minimum price above equilibrium
- where market demand equals market supply
- demand more than supply at a price
- firms can join or leave the market freely
Answer
(c) demand more than supply at a price
Section B · short answer
- 4.
What is meant by market equilibrium?
Answer
A situation where quantity demanded equals quantity supplied, so there is no tendency for price to change.
- 5.
With a fixed number of firms, what happens to equilibrium price and quantity if (a) supply rises, demand unchanged (b) demand falls and supply rises?
Answer
(a) price falls, quantity rises (b) price falls; quantity may go either way
Section C · long answer
- 6.
Explain how equilibrium price and quantity are reached in a market with a fixed number of firms.
Answer
Price moves until demand equals supply: excess demand pushes it up, excess supply pushes it down; equilibrium is where the curves cross.
Fresh sheets for your child
In the app, every Market Equilibrium sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
Coming soon for Android and iPhone.