NCERT Class 9 Social Science Important Chapter 9 The Price Puzzle: What Drives the Market Solutions English Medium As Per New Syllabus. NCERT Class 9 Social Science Important Chapter 9 The Price Puzzle: What Drives the Market Notes to each chapter is provided in the list so that you can easily browse throughout different chapter NCERT Class 9 Social Science Additional Question Answer Download PDF and select needs one. CBSE Class 9 Social Science Additional Solutions.
NCERT Class 9 Social Science Important Chapter 9 The Price Puzzle: What Drives the Market
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The Price Puzzle: What Drives the Market
Chapter – 9
| Part – I: Economics |
| Important Question Answer |
A. Fill in the Blanks
1. Demand refers to the quantity of a product that consumers are willing and able to buy at a particular ________.
Ans: Price.
2. The relationship between price and quantity demanded is explained by the Law of ________.
Ans: Demand.
3. Goods that are generally used together, such as smartphones and earphones, are called ________ goods.
Ans: Complementary.
4. The total quantity supplied by all sellers in a market is known as ________ supply.
Ans: Market.
5. When quantity demanded equals quantity supplied, the market reaches ________.
Ans: Equilibrium.
B. True or False
1. Demand depends only on the price of a product.
Ans: False.
2. An increase in technology can increase the supply of goods.
Ans: True.
3. Future expectations of lower prices may encourage consumers to postpone purchases.
Ans: True.
4. A monopoly exists when many sellers compete equally in the market.
Ans: False.
5. Public goods are generally provided by the government because they benefit everyone.
Ans: True.
C. Short Answer Questions
1. Why is purchasing power important in determining demand?
Ans: Purchasing power is important because demand exists only when consumers are both willing and able to buy a product. Without sufficient purchasing power, the desire to buy does not become actual demand.
2. How do substitute goods affect demand?
Ans: When the price of one product increases, consumers may switch to its substitute. As a result, the demand for the substitute product increases.
3. How does technology influence the supply of goods?
Ans: Improved technology reduces production costs and increases efficiency. This enables producers to manufacture and supply larger quantities of goods.
4. Why do prices often change during different seasons?
Ans: Seasonal changes influence both consumer demand and product availability. As demand and supply vary with weather and festivals, prices also change.
5. What is market demand?
Ans: Market demand is the total quantity of a product demanded by all consumers in a market at different price levels.
6. Why do producers increase supply when prices rise?
Ans: Higher prices increase profitability and encourage producers to produce and sell more goods.
7. How can future price expectations influence consumers?
Ans: If consumers expect prices to rise, they buy immediately. If they expect prices to fall, they delay their purchases.
8. Why does the government regulate monopolies?
Ans: The government regulates monopolies to prevent unfair pricing, restricted supply, poor-quality goods, and exploitation of consumers.
D. Long Answer Questions
1. Explain the major factors that influence the demand for a product.
Ans: Demand is influenced by several factors besides price. These include consumer income, tastes and preferences, prices of substitute and complementary goods, population size and composition, seasonal changes, and future price expectations. These factors determine how much consumers are willing and able to purchase even when prices remain unchanged.
2. Describe the Law of Supply and explain the factors that affect supply.
Ans: The Law of Supply states that as the price of a product increases, the quantity supplied also increases, while a fall in price reduces supply. Supply is affected by the prices of related goods, the number of sellers in the market, technological improvements, and producers’ expectations about future demand and prices.
3. Explain the concept of market equilibrium and describe what happens when demand and supply are not equal.
Ans: Market equilibrium occurs when quantity demanded equals quantity supplied. At this point, there is neither excess demand nor excess supply, and prices remain stable. When demand exceeds supply, shortages occur and prices tend to rise. When supply exceeds demand, surpluses occur and prices tend to fall until equilibrium is restored.
4. Discuss the role of government in ensuring fairness in the market.
Ans: The government protects consumers and producers by regulating unfair practices, controlling monopolies, fixing price ceilings and price floors when necessary, and providing public goods such as roads, parks, sanitation, and national defence. These measures help promote fairness, consumer welfare, and economic stability.
5. Explain the limitations of excessive government intervention in markets.
Ans: Excessive government intervention may create price distortions, reduce producers’ motivation to produce, increase compliance costs for businesses, and discourage innovation and entrepreneurship. Therefore, government intervention should be carefully balanced to protect public welfare without reducing market efficiency.
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