Class 12 Economics: Microeconomics – Market Equilibrium – Get here the Notes for Class 12 Economics: Microeconomics – Market Equilibrium. Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes. This is possible only when you have the best CBSE Class 12 Economics Notes, study material, and a smart preparation plan. CBSE 2019 Class 12th Exam is approaching and candidates will have to make the best use of the time available towards the last stage of your CBSE Class 12th Economics Preparation. To help you with that, below we have provided the Notes of 12 Economics for topic Microeconomics – Market Equilibrium.
- Class: 12th
- Subject: Economics
- Topic: Microeconomics – Market Equilibrium
- Resource: Notes
CBSE Notes Class 12 Economics Market Equilibrium
Candidates who are pursuing in Class 12 are advised to revise the notes from this post. With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. So, go ahead and check the Important Notes for Class 12 Economics: Microeconomics – Market Equilibrium.
Market Equilibrium
1. Market Equilibrium It is a situation of the market in which demand for a commodity is exactly equal to its supply.
2. Equilibrium Price Which corresponds to the quantity between market demand and market supply of a commodity.
3. Equilibrium Quantity Which corresponds to the equilibrium price in the market.
4. Excess Demand If at any price demand is greater than market supply. it is said excess demand in the market.
Yd > Ys
Here, Ys = Market supply
Yd = Market Demand
5. Excess Supply If at any price market supply is greater than market demand. it is said excess supply in the market.
Ys > Yd
Here, Ys = Market supply
Yd = Market Demand
6. Non-viable Industry The industry for which demand curve and supply do not intersect each other at any positive quantity is called non-viable industry.
7. Viable Industry In case of viable industry supply and demand Curve must Intersect at same point.
8. Price ceiling Price ceiling means maximum price of a commodity that the seller can charge from the buyers
the government fixes this price much below the equilibrium market price of a commodity. so that, it. becomes within the reach of the poorer sections of the society.
9. Price Floor It means the minimum price fixed by the government for a commodity in the market. It seems
paradoxical.
(i) Each firm employs labour up to the point where the marginal revenue product of labour equals the wage rate.
(ii) With supply curve remaining unchanged when demand curve shifts rightward (leftward). the equilibrium quantity increases (decreases) and equilibrium price increases with fixed number of firms.
(iii) With demand curve remaining unchanged when supply curve shifts rightward (leftward), the equilibrium quantity increases (decreases) and equilibrium price decrease (increases) with fixed number of firm.
10. Effect of a Simultaneous Change in Demand and Supply on Equilibrium Price
(i) When demand increases more than supply, equilibrium price will increase.
(ii) When demand and supply increases equally, equilibrium price remain constant.
(iii) When supply increases more than demand, equilibrium price falls.
Class 12 Key Points, Important Questions & Practice Papers
Hope these notes helped you in your schools exam preparation. Candidates can also check out the Key Points, Important Questions & Practice Papers for various Subjects for Class 12 in both Hindi and English language form the link below.
Class 12 NCERT Solutions
Candidates who are studying in Class 12 can also check Class 12 NCERT Solutions from here. This will help the candidates to know the solutions for all subjects covered in Class 12th. Candidates can click on the subject wise link to get the same. Class 12 Chapter-wise, detailed solutions to the questions of the NCERT textbooks are provided with the objective of helping students compare their answers with the sample answers.
Class 12 Mock Test / Practice
Mock test are the practice test or you can say the blue print of the main exam. Before appearing in the main examination, candidates must try mock test as it helps the students learn from their mistakes. With the help of Class 12 Mock Test / Practice, candidates can also get an idea about the pattern and marking scheme of that examination. For the sake of the candidates we are providing Class 12 Mock Test / Practice links below.
Class 12 Exemplar Questions
Exemplar Questions Class 12 is a very important resource for students preparing for the Examination. Here we have provided Exemplar Problems Solutions along with NCERT Exemplar Problems Class 12. Question from very important topics is covered by Exemplar Questions for Class 12.
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