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Questions › UGC-NET › UGC-NET 2023 › Q34
2 marksMicroeconomics › Perfect competition › Market equilibrium and comparative staticsHardabout 1 min

UGC-NET 2023 Question 34: Perfect competition

In the given figure, DD is the demand curve and SS is the supply curve in a market (the supply curve is backward-bending, intersecting demand at a high-price point E2 at price P2 and a low-price point E1 at price P1). Choose the right answer from the following.

Diagram for UGC-NET 2023 question 34

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Answer and worked solution

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Perfect competition has come up 115 times in 7 exams since 2006.

What this question tests

This question is on Market equilibrium and comparative statics, part of Perfect competition in Microeconomics.

Finding equilibrium from demand and supply and tracing how it moves when either curve shifts.

TestStop has 25 past-paper questions on this subtopic; the nearest in year are below.

  • IIT JAM 2022 · Q1The supply curve Sₓ is backward bending and the demand curve Dₓ is downward sloping. They intersect at two…
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Question from the UGC-NET 2023 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.