Class 11 Economics Important Chapter 11 Market Equilibrium And Simple Application of Tools of Demand and Supply Curve

Class 11 Economics Important Chapter 11 Market Equilibrium And Simple Application of Tools of Demand and Supply Curve Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Economics Important Solutions and select need one. AHSEC Class 11 Economics Additional Notes English Medium Download PDF. HS 1st Year Economics Important Solutions in English.

Class 11 Economics Important Chapter 11 Market Equilibrium And Simple Application of Tools of Demand and Supply Curve

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. Assam AHSEC Board Class 11 Economics Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Economics Important Notes in English for All Chapters, You can practice these here.

Market Equilibrium And Simple Application of Tools of Demand and Supply Curve

Chapter: 11

PART – A : MICROECONOMICS

IMPORTANT QUESTION AND ANSWER

Short Type Question and Answer:

1. What does equilibrium price ensure in a market?

Ans: It ensures that buyers and sellers are both satisfied as quantity demanded equals quantity supplied.

2. Why does excess demand push prices upward?

Ans: Buyers compete for limited goods, encouraging sellers to raise prices.

3. In perfect competition, when do firms achieve maximum profit?

Ans: When market price equals equilibrium price and planned sales match planned purchases.

4. What is the effect of excess supply on prices?

Ans: It causes prices to fall until supply equals demand.

5. According to Adam Smith, what drives the market toward equilibrium?

Ans: The “invisible hand” of self-interest guiding price adjustments.

6. What happens when demand increases but supply remains constant?

Ans: Prices rise and quantity traded increases.

7. What is the impact of a rightward shift in the supply curve with constant demand?

Ans: Prices fall and the quantity traded increases.

8. In a non-viable industry, how does the supply curve relate to the demand curve?

Ans: The supply curve lies entirely above the demand curve.

9. Give one example of a non-viable industry in India.

Ans: Commercial aircraft manufacturing.

10. How does free entry of firms affect long-run profits?

Ans: It drives profits down to normal levels.

11. What does the government aim to achieve through price control policies?

Ans: To keep prices at socially or economically desirable levels.

12. What is a consequence of long-term price ceilings?

Ans: Formation of black markets.

13. How does a floor price help farmers?

Ans: By ensuring they don’t have to sell below a minimum guaranteed price.

14. What does the FAD theory explain?

Ans: Starvation due to reduced food availability despite market functioning.

15. In the FAD example, what happens to the poorest family when prices rise significantly?

Ans: They are priced out of the market and face starvation.