This unit covers demand and supply functions, their determinants, and movement versus shift of the curves; market equilibrium and the effect of changes in demand and supply; the effect of government policy (tax, subsidy and price control) on equilibrium; and market efficiency measured by consumer's and producer's surplus.
Market Equilibrium and Efficiency
Market Equilibrium and Efficiency
Learn Market Equilibrium and Efficiency in Microeconomics for Business with comprehensive educational content from Padandas.
Nov 7, 2026
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Questions from Market Equilibrium and Efficiency
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1.
Asked in 2077 (2 marks)
Define consumer's surplus?
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2.
Asked in 2078 (2 marks)
Write any four factors that cause rightward shifts in demand curve.
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3.
Asked in 2078 (10 marks)
What is an economic efficiency? How can it be measured?
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4.
Long question Asked in 2078 (15 marks)
Consider the following table:
Points: A B C D E Px: 8 6 4 2 0 Qsx: 50 40 30 20 10 Qdx: 0 15 30 45 60 a. Derive linear demand and supply functions.
b. Graph Qsx and Qdx and determine equilibrium price and quantity.
c. Compute price elasticity of supply at movement from B to D and D to B by (i) percentage method and (ii) arc method. Which method is more appropriate and why?
d. How do business firms use the concept of price elasticity of demand in business decision making? Explain. -
5.
Asked in 2079 (2 marks)
Consider the supply function \( Qs = a + bP \) and interpret the components.
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6.
Asked in 2079 (10 marks)
Explain the factors that cause shift in demand curve.
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