If, at all positive quantities, the upward sloping supply curve lies above the downward sloping demand curve, then the
Tap an option to check your answer.
1 mark, −0.33MicroeconomicsPerfect competitionMarket equilibrium and comparative staticsModerateabout 1 min
UoH 2013 Question 10: Perfect competition
Answer and worked solution
Checking your account…
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 2021 · Q17Two firms with identical technology have cost Cᵢ(qᵢ) = qᵢ². Market demand is p = 100 - q with q = q₁ + q₂.…
- GATE 2021 · Q23Consider the following demand-supply model, where Demand function: P=Q²-12Q+35 Supply function: 4P-3Q=0 The…
- IIT JAM 2022 · Q1The supply curve Sₓ is backward bending and the demand curve Dₓ is downward sloping. They intersect at two…
- IIT JAM 2022 · Q36Demand Qₓ^D = f(Pₓ, I) and supply Qₓ^S = g(Pₓ, A), where I (income) and A (advertisement) are exogenous.…
Similar questions from other papers
- The market for torch is perfectly competitive. The market demand function for torch is given by X^d=min (400-p,0), p≥0, where p is the price of a torch. The market…
- Consider the demand and supply functions: D(p)=400-8p and S(p)=2p, where p is the unit price and the choke price is Rupees 50. Identify which of the following…
- Which of the following does not hold at the equilibrium price and quantity in a perfectly competitive market?
- In the context of a perfectly competitive market, identify the statement that is NOT CORRECT.
- Which one of the following is the shut-down condition for a profit maximizing firm in a perfectly competitive market? (P = Price, AVC = Average Variable Cost, ATC =…
Question from the UoH 2013 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.