Q.How is the price of a commodity determined under Perfect Competition? Explain with the help of an example and diagram.

Marshall divided production/supply time into FOUR periods, so the answer is (C) Four.

In the Marshallian treatment of price determination, supply cannot react instantly; how much it can adjust depends on the time allowed. On this basis Marshall recognised four time periods: (1) the market or very short period (supply is fixed), (2) the short period (supply varies only by changing variable factors), (3) the long period (all factors variable, firms can enter/exit), and (4) the very long or secular period (even technology and population change). Thi …

Market price is a very-short-period phenomenon, so the answer is (A) Very short period market.

Marshall distinguished market price from normal price. Market price is the actual price on a given day, determined when the stock of the good is fixed and supply cannot respond; demand is the dominant force, so the price can fluctuate sharply. In the long and very long periods supply fully adjusts and the price tends towards the nor …

Every option describes equilibrium, so the answer is (D) All of these.

Equilibrium is a state of rest. At the equilibrium price the amount buyers want to purchase exactly equals the amount sellers want to sell, so market demand equals market supply, and neither firms nor consumers have any incentive to change their plans (no force pushing price up or down). Statements (A), (B …

Equilibrium price is set where demand equals supply, so the answer is (C).

In a competitive market the price is determined at the intersection of the demand and supply curves — the point where the quantity consumers are willing to buy equals the quantity producers are willing to sell. If demand merely being high (A) or supply being high (B) decided price, there would be persistent surpluses or shortages; price actually adjusts until the two are equal. This demand-supp …

Market equilibrium is the state where quantity demanded equals quantity supplied, so there is no tendency for price to change.

Market equilibrium refers to a situation in the market where the quantity that buyers are willing to buy is exactly equal to the quantity that sellers are willing to sell at the prevailing price ($Q_D = Q_S$). At this point there is neither excess demand nor excess supply, so the market price and quantity have no tendency to change until demand o …

Market price is set where demand and supply balance, so the answer is (C) Both Demand and Supply.

A central idea of the BSEB Inter / Class-12 Commerce Economics syllabus (aligned with the NCERT/CBSE micro curriculum) is that in a free, competitive market price is determined by the interaction of the market demand and the market supply for a good. Demand alone cannot fix price (buyers would want the lowest price), and supply alone cannot fix it either (sellers would want the highest). The price settles at the level where quantity demanded equals quantity supplied — the equilibrium price.

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Market price is finally determined at the equilibrium point where quantity demanded = quantity supplied, so the answer is (C).

In the BSEB Inter / Class-12 Commerce Economics syllabus, the equilibrium price is defined as the price at which market demand equals market supply. At any price above equilibrium, supply exceeds demand (excess supply/surplus), and competition among sellers pushes the price down. At any price below equilibrium, demand exceeds supply (excess demand/shortage), and competition among buyers pushes the price up. These forces stop on …

The word for a state of balance is equilibrium.

Equilibrium refers to a position of rest or balance from which there is no tendency to move, because the opposing forces acting on it are exactly equal. In a market, equilibrium occurs where the quantity demanded equals the quantity supplied, determining the equilibrium …

Market price is a fluctuating phenomenon.

The market price is the price prevailing in the market at a particular moment, determined by the current (short-run) forces of demand and supply. Because these forces change frequently, the market price keeps fluctuating from time to time. In contrast, the normal (long-run) price i …

Market equilibrium: quantity demanded = quantity supplied, so price is stable.

A market is in equilibrium at the price at which the amount buyers wish to buy exactly equals the amount sellers wish to sell. At this equilibrium price there is neither excess demand nor excess supply, so there is no pressure on price to rise or fall. The corresponding quantity is the equilibrium quantity.

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A market is in equilibrium when quantity demanded equals quantity supplied, so the answer is (c).

Equilibrium in a market is the price–quantity combination at which there is neither excess demand nor excess supply. At the equilibrium price the amount that buyers wish to purchase is exactly equal to the amount that sellers wish to sell, so there is no tendency for the price to change.

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