CA Foundation Determination of Prices — practice questions
16 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Determination of Prices in the app →In market analysis, the price at which the quantity demanded of a commodity exactly equals the quantity suppliA free market is best described as a market in which:When the prevailing market price is set above the equilibrium price, the immediate outcome in the market is:An equilibrium is described as stable when a disturbance to it is followed by:A schedule shows that at a price of ₹3 demand is 20 units and supply is 45 units, while at ₹2 demand is 35 uniConsider a market with demand $Q_d = 60 - 10P$ and supply $Q_s = 5P - 15$. The equilibrium price is:For the demand $Q_d = 60 - 10P$ and supply $Q_s = 5P - 15$, the equilibrium quantity traded is:Holding supply unchanged, an increase in the demand for a normal good will cause the equilibrium price and equWith demand held constant, a decrease in supply caused by obsolete technology will lead to:When demand and supply both increase but supply rises in a greater proportion than demand, the new equilibriumIf both demand and supply increase by exactly the same amount, the new equilibrium will show:When demand increases and supply decreases at the same time, the certain outcome for the market is that:When demand decreases and supply increases simultaneously, which statement is correct?X is a normal good. Consumers' income rises while, at the same time, the price of a factor used to produce X aHeavy rains destroy a large part of the rice crop while demand for rice is unchanged. The most likely new equiWhen a binding price ceiling is fixed by the government below the equilibrium price of a good, the expected ma