Explain market equilibrium.

When do we say there is excess demand for a commodity in the market?

When do you say there is excess supply for a commodity in the market?

Explain the effects of 'maximum price ceiling' on the market of a good. Use diagram.

What are the effects of 'price-floor' (minimum price ceiling) on the market of a good? Use diagram.

Market for a good is in equilibrium. There is simultaneous "decrease" both in demand and supply but there is no change in market price. Explain with the help of a schedule how is it possible.

What will happen if the price prevailing in the market is
(i) Above the equilibrium price?
(ii) Below the equilibrium price?

How are equilibrium price and quantity affected when income of the consumers.
(i) Increase? (ii) Decrease?

Using supply and demand curves, show how an increase in the price of shoes affects the price of a pair of socks and the number of pairs of socks bought and sold.

Suppose the demand and supply curves of salt are given by:
\({ q }^{ D }\)=1,000 - P
\({ q }^{ S }\)=700 + 2P
(i) Find the equilibrium price and quantity.
(ii) Now suppose that the price of an input used to produce salt has increased so that the new supply curve is \({ q }^{ S }\) = 400 + 2p. How does the equilibrium price and quantity change? Does the change conform to your expectation?
(iii) Suppose the government has imposed a tax of Rs.3 per unit on sale of salt. How does it affect the equilibrium price and quantity?

How price and quantity are determined in the market when number of firms are fixed?

How will equilibrium price be reached when there is excess demand/excess supply? Explain with diagram.