Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

Statement : Price p* shows equilibrium and price pc shows excess supply. Which of the following is correct about this statement?

Options:

True

False

Partially true

Can’t say

Correct Answer:

Partially true

Explanation:

The correct answer is Option 3: Partially true

Price p* shows equilibrium and but excess demand exists at price pc (and NOT excess supply as mentioned in the statement). hence, the given statement is partially true.