11th class Economics chapter 6 online mcq test with answers for ICS part 1 Economics chapter 6 (Market Equilibrium)

Question # 1

Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is

a shortage A
a surplus B
excess supply C
loss D

Question # 2

When the price of a product increase by 100 percent and as a consequence, its quantity supplied increase by 125 percent, Its elasticity of supply will be.

Less than unity A
Greater than unity B
Equal to unity C
Equal to zero D

Question # 3

A decrease in demand causes the equilibrium price to

rise A
fall B
remain constant C
indeterminate D

Question # 4

When the supply curve of a product is parallel to the vertical axis, it would mean that;

Different quantities of a product are supplied at the same price. A
Different quantities of a product are supplied at different price. B
Same quantities of a product are supplied at different price. C
None of three D

Question # 5

Perfectly inelastic supply curve is:

Parallel to vertical axis A
Parallel to horizontal axis B
Rises upward to the right C
Falls downward to the right D

Question # 6

When price is fixed below equilibrium level, there will be

surplus commodity in the market A
shortage of commodity in the market B
supply curve will shift C
demand curve will shift D

Question # 7

Extension of supply will take place as a consequence of:

Change in price A
Change in population B
Change in technology C
Change in money supply D

Question # 8

In case of a fall in supply.

Quantity supplied falls at the same price. A
Quantity supplied rises at the same price. B
Quantity supplied remain at the lower price. C
None of the three D

Question # 9

If equilibrium price rises but equilibrium quantity remains unchanged, the cause is

supply and demand both increase equally A
supply and demand both decrease equally B
supply decreases and demand increases C
supply increases and demand decreases D

Question # 10

Which one will be termed as supply of a product.

One tone potato in cold storage A
One ton rice offered for sale in market B
One ton rice brought for sale in market at a certain price. C
None of the three D

Question # 11

A rise in supply and demand in equal proportion will result in

increase in equilibrium price and decrease in equilibrium quantity A
decreases in equilibrium price and increases in equilibrium quantity B
no change in equilibrium price and increases in equilibrium quantity C
increases in equilibrium price and no change in equilibrium quantity D

Question # 12

If equilibrium price rises but equilibrium quantity is unchanged, the cause is

supply and demand both increase equally A
supply and demand decrease equally B
supply curve is vertical and demand increases C
supply increases and demand is same D

Question # 13

Market equilibrium means

number of buyers and sellers are equal A
demand and supply of commodity are equal B
no price is changing C
prices rise very slowly D

Question # 14

If price is set above equilibrium level, there will be

surplus commodity in the market A
shortage of commodity in the market B
supply curve will shift C
demand curve will shift D

Question # 15

The price and sales of sugar both increase. What could be the cause of this?

a decrease in the income of the consumers. A
a decrease in the tax on sugar B
An increase in the wages of workers in the sugar industry C
An increase in the price of sugar substitutes D

Question # 16

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then

price will fall A
price remains same B
price will rise C
quantity rises D

Question # 17

Demand and supply forces determine market price

only in perfect competition A
only in monopoly market B
in both markets C
none of the above D

Question # 18

Price of a product is determined in a free market

by demand for the product A
by supply of the product B
by both demand and supply C
by the government D

Question # 19

One of the following is not an assumption of law of supply.

Political system should not changed A
Cost of production should not changed B
Production technique should not changed C
Cost of raw material should not changed D

Question # 20

Markets where firms supply goods and services demanded by households are

factor market A
product market B
open markets C
resource markets D

Sr.#	Question	Answer
1	An increases in the price of mutton provides information which	A. tells consumers to buy more mutton B. tells consumers to buy more chicken C. tells producers to produce more mutton D. b and c of above
2	Market equilibrium means	A. number of buyers and sellers are equal B. demand and supply of commodity are equal C. no price is changing D. prices rise very slowly
3	Demand and supply forces determine market price	A. only in perfect competition B. only in monopoly market C. in both markets D. none of the above
4	If equilibrium price rises but equilibrium quantity remains unchanged, the cause is	A. supply and demand both increase equally B. supply and demand both decrease equally C. supply decreases and demand increases D. supply increases and demand decreases
5	Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is	A. a shortage B. a surplus C. excess supply D. loss
6	Price of a product is determined in a free market	A. by demand for the product B. by supply of the product C. by both demand and supply D. by the government
7	The price and sales of sugar both increase. What could be the cause of this?	A. a decrease in the income of the consumers. B. a decrease in the tax on sugar C. An increase in the wages of workers in the sugar industry D. An increase in the price of sugar substitutes
8	Market Price of Perishable	A. Commodities B. Utility C. Consumer D. None of these
9	Extension of supply will take place as a consequence of:	A. Change in price B. Change in population C. Change in technology D. Change in money supply
10	One of the following is not an assumption of law of supply.	A. Political system should not changed B. Cost of production should not changed C. Production technique should not changed D. Cost of raw material should not changed

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Economics Ics Part 1 English Medium Chapter 6 Online Test

Ten rupees is the equilibrium price for good Z. If govt. fixes price at Rs. 5, there is

When the price of a product increase by 100 percent and as a consequence, its quantity supplied increase by 125 percent, Its elasticity of supply will be.

A decrease in demand causes the equilibrium price to

When the supply curve of a product is parallel to the vertical axis, it would mean that;

Perfectly inelastic supply curve is:

When price is fixed below equilibrium level, there will be

Extension of supply will take place as a consequence of:

In case of a fall in supply.

If equilibrium price rises but equilibrium quantity remains unchanged, the cause is

Which one will be termed as supply of a product.

A rise in supply and demand in equal proportion will result in

If equilibrium price rises but equilibrium quantity is unchanged, the cause is

Market equilibrium means

If price is set above equilibrium level, there will be

The price and sales of sugar both increase. What could be the cause of this?

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then

Demand and supply forces determine market price

Price of a product is determined in a free market

One of the following is not an assumption of law of supply.

Markets where firms supply goods and services demanded by households are

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