Question 10
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 |
If the price were ₹10, what would happen?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
At ₹10, quantity demanded is 0 and quantity supplied is 80.
The whole 80 is excess supply, which pushes the price down.
- Concept
- Far above equilibrium
- Typical timeTypical
- 70 s
- Your timeYours
- —
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