Match List-I (change in the market, with a fixed number of firms) wit…

Match List-I (change in the market, with a fixed number of firms) with List-II (effect on equilibrium):

List-I		List-II
(A)	Demand curve shifts rightward, supply curve unchanged	(I)	Price falls, quantity rises
(B)	Demand curve shifts leftward, supply curve unchanged	(II)	Price rises, quantity falls
(C)	Supply curve shifts rightward, demand curve unchanged	(III)	Price and quantity both fall
(D)	Supply curve shifts leftward, demand curve unchanged	(IV)	Price and quantity both rise

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

With a fixed number of firms, a demand shift moves price and quantity in the same direction. A supply shift moves them in opposite directions.

List-I	List-II	Reason
(A) Demand curve shifts rightward, supply curve unchanged	(IV) Price and quantity both rise	At the old price there is excess demand, so the price rises. The new equilibrium has a higher price and a higher quantity.
(B) Demand curve shifts leftward, supply curve unchanged	(III) Price and quantity both fall	At the old price there is excess supply, so the price falls. Both price and quantity end up lower.
(C) Supply curve shifts rightward, demand curve unchanged	(I) Price falls, quantity rises	More is supplied at each price, so there is excess supply and the price falls. More is bought at the lower price.
(D) Supply curve shifts leftward, demand curve unchanged	(II) Price rises, quantity falls	Less is supplied at each price, so there is excess demand and the price rises. Less is bought at the higher price.

NCERT (2026-27): “Summary … With supply curve remaining unchanged when demand curve shifts rightward (leftward), the equilibrium quantity increases (decreases) and equilibrium price increases (decreases) with fixed number of firms. … With demand curve remaining unchanged when supply curve shifts rightward (leftward), the equilibrium quantity increases (decreases) and equilibrium price decreases (increases) with fixed number of firms.”

“Demand Shift … Similarly if the demand curve shifts leftward to DD1, as shown in panel (b), at any price the quantity demanded will be less than what it was before the shift. Therefore, at the initial equilibrium price p0 now there will be excess supply in the market equal to q'0 q0 in response to which some firms will reduce the price of their commodity so that they can sell their desired quantity. The new equilibrium is attained at the point F at which the demand curve DD1 and the supply curve SS0 intersect and the resulting equilibrium price p1 is less than p0 and quantity q1 is less than q0. Notice that the direction of change in equilibrium price and quantity is same whenever there is a shift in demand curve.”

“Supply Shift … Similarly, when supply curve shifts rightward, as shown in panel (b), at p0 there will be supply excess of goods equal to q₀q′₀. In response to this excess supply, some firms will reduce their price and the new equilibrium will be attained at F where the supply curve SS1 intersects the demand curve DD0 such that the new market price is p1 at which q1 quantity is bought and sold. Notice the directions of change in price and quantity are opposite whenever there is a shift in supply curve.”