Market Equilibrium Test 1 Mcqs Online Preparation Malik Asghar — April 23, 2018 in Economics • add comment Market Equilibrium Test 1 Mcqs Online Preparation 1. A decrease in demand causes the equilibrium price to:A. FallB. RiseC. Remain constantD. Indeterminate Loading... 2. An increases in the price of mutton provides information which:A. Provides no informationB. Tells consumers to buy more chickenC. Tells consumers to buy more muttonD. Tells producers to produce more mutton Loading... 3. When price is below equilibrium level, there will be:A. Shortage of commodity in the marketB. Demand curve will shiftC. Supply curve will shiftD. Surplus commodity in the market Loading... 4. Equilibrium:A. Is a stable conditionB. Is an unstable conditionC. Is a state that can never be achieved in economics D. Is an important idea for predicting economic changes Loading... 5. A rise in supply and demand in equal proportion will result in:A. No change in equilibrium price and increase in equilibrium quantityB. Increase in equilibrium price and decrease in equilibrium quantityC. Decrease in equilibrium price and increase in equilibrium quantityD. Increase in equilibrium price and no change in equilibrium quantity Loading... 6. Price of a product is determined in a free market:A. By demand for the product B. By the governmentC. By both demand and supply D. By supply of the product Loading... 7. If equilibrium price rises but equilibrium quantity remains unchanged, the cause is:A. Supply and demand both increase equally B. Supply increases and demand decreasesC. Supply decreases and demand increasesD. Supply and demand both decrease equally Loading... 8. The price and sales of sugar both increase. What could be the cause of this ?A. An increase in the wages of workers in the sugar industryB. A decrease in the tax on sugar C. A decrease in the incomes of the consumers D. An increase in the price of sugar substitutes Loading... 9. Ten rupees is the equilibrium price for good X. If government fixes price at Rs. 5, there is:A. LossB. A shortage C. A surplusD. Excess supply Loading... 10. In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the rights. Then:A. Price remains sameB. Price will riseC. Quantity risesD. Price will fall Loading... Loading... Related NTS Results Post:Market and Revenue Curves Test 01 Mcqs Preparation OnlineEquilibrium of National income Test 01 Preparation OnlineEquilibrium of firm Perfect Competition and Monopoly…Biology Mcqs Test 11 Online PreparationBiology Mcqs Test 09 Online PreparationBiology Mcqs Test 08 Online PreparationBiology Mcqs Test 06 Online PreparationGeography Test 1 Mcqs Online Preparation