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Questions › UoH › UoH 2011 › Q11
1 mark, −0.33Microeconomics › Perfect competition › Market equilibrium and comparative staticsModerateabout 1 min

UoH 2011 Question 11: Perfect competition

A commodity is available in fixed supply. Demand is downward sloping with respect to own price. It is found that in equilibrium configuration, there is excess supply observed for this commodity at zero price. Then this represents a case of:

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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.

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Question from the UoH 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.