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प्रश्न
State with reasons whether you agree or disagree with the following statement.
Price under perfect competition is decided by the interaction between demand and supply.
पर्याय
Agree
Disagree
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उत्तर
I Agree with the given statement.
Reason:
In a market with perfect competition, the price of the good is determined by the interaction of supply and demand. This price is referred to as the equilibrium price. The forces of supply and demand must coexist in order to establish the market's equilibrium price.
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संबंधित प्रश्न
Observe the following table and answer the questions:
| Price of a banana (per dozen) in ₹ | Demand (in dozen) | Supply (in dozen) | Relation between DD and SS |
| 10 | 500 | 100 | DD > SS |
| 20 | 400 | _____ | DD > SS |
| 30 | _____ | 300 | DD = SS |
| 40 | 200 | _____ | DD < SS |
| 50 | ______ | 500 | DD < SS |
- Fill in the blanks in the above schedule.
- Derive the equilibrium price from the above schedule with the help of a suitable diagram.
Study the following diagram and answer the questions:
Questions:
- Prepare a hypothetical schedule for market demand and supply for the given market.
- State the equilibrium price and corresponding market demand and market supply for the given market.
What is meant by equilibrium price under perfect competition?
What is the main idea of Marshall’s scissors analogy in price determination?
In the apple example, why is ₹300 called the equilibrium price?
What happens when the market price is set below the equilibrium price?
Under perfect competition, how is the price faced by an individual firm best described?
