Question 16
MediumOriginal questionA market's demand and supply schedules are given.
| Price (₹) | 2 | 4 | 6 | 8 | 10 |
|---|---|---|---|---|---|
| Quantity demanded | 80 | 60 | 40 | 20 | 0 |
| Quantity supplied | 0 | 20 | 40 | 60 | 80 |
At a price of ₹8, what is the market like?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
At ₹8, 20 are demanded and 60 supplied: 40 units are left unsold.
Sellers compete to clear the stock, so the price falls towards ₹6.
- Concept
- Excess supply and price
- Typical timeTypical
- 70 s
- Your timeYours
- —
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