FORMS OF MARKET AND PRICE DETERMINATION

1.If the influence of an individual seller on the market price is zero, the state of markets is

• Perfect competition

• Monopoly

• Monopolistic competition

• All of these.

Under perfect competition, demand curve of a firm is

• Positively sloped

• Negatively sloped

• Horizontal

• Vertical

If both supply and demand increase by the same proportion

• Price remains constant

• Quantity remains constant

• Price increases

• Quantity decreases

What will be the effect on equilibrium market price of a good if its demand decreases and supply increases?

• Equilibrium price Falls

• Equilibrium price Rises

• Equilibrium price remains unchanged

• Equilibrium price may increase decrease and remain unchanged.

Which of the following is the effect of price ceiling?

• Hoarding

• Black marketing

• Rationing

• All of these