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Price-output determination under different


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Q.1)In the table below what will be equilibrium market price?
Price (₹) Demand (tonnes per annum) Supply (tonnes per annum)
1 1000 400
2 900 500
3 800 600
4 700 700
5 600 800
6 500 900
7 400 1000
8 300 1100

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The equilibrium market price is the point where the demand equals the supply for a particular commodity. In this case, demand (700) is equal to supply (700) at ₹4. Hence, it is equilibrium market price .
ans: (c)



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