After the demand shifts rightward, the new demand equation becomes: qD = 240 − p The supply equation remains: qS = 120 + p At equilibrium, qD = qS Therefore, 240 − p = 120 + p 120 = 2p p = 60 Substituting p = 60 into either equation, q = 120 + 60 = 180 Thus, the new equilibrium is: p = 60, q = 180 Hence, Option C is correct.

The correct logical sequence is: Step 3: Consumers demand less at every price. Step 2: The demand curve shifts leftward from DD₀ to DD₁. Step 1: At the original equilibrium price, excess supply develops. Step 4: Price falls until a new equilibrium with lower price and lower quantity is established. Thus, the correct order is: 3 → 2 → 1 → 4 Therefore, OptionB is correct.

The Assertion (A) is false because a rightward shift in supply means producers supply more at every price. At the original equilibrium price, quantity supplied exceeds quantity demanded, creating excess supply, not excess demand. The Reason (R) is also false because firms do not raise prices after a rightward shift in supply. Instead, the excess supply puts downward pressure on price until a new equilibrium is reached. Therefore: Assertion: False Reason: False Hence, Option A is correct.

1 → a: Higher input prices increase production costs, shifting the supply curve leftward. 2 → b: An increase in the number of firms shifts the supply curve rightward. 3 → c: A leftward shift in supply creates excess demand at the original equilibrium price. 4 → d: A rightward shift in supply creates excess supply at the original equilibrium price. Thus, the correct matching is: 1 → a, 2 → b, 3 → c, 4 → d Therefore, Option B is correct.

For an inferior good, an increase in consumer income causes consumers to switch to superior substitutes. Consequently, demand for the inferior good decreases. As a result: The demand curve shifts leftward. At the original price, excess supply develops. Sellers reduce the market price until a new equilibrium is established. Therefore: First blank = leftward Second blank = lower Hence, Option C is correct.

For normal goods, an increase in consumers' income raises purchasing power, causing the demand curve to shift rightward. Statement I: Correct. Higher salary increases demand for normal goods. Statement II: Correct. With supply unchanged, the rightward demand shift results in a higher equilibrium quantity. Statement III: Correct. Consumer income is a determinant of demand, not supply, so the supply curve remains unchanged. Therefore, all three statements are correct, making Option B the correct answer.

An increase in the number of consumers increases the quantity demanded at every price, causing the entire demand curve to shift rightward. This is a shift of the demand curve, not a movement along the existing demand curve. Since the number of consumers affects demand and not production conditions, the supply curve remains unchanged. Therefore: Option A correctly represents the graphical change. Option B represents a movement along the demand curve due to a change in price, not population. Option C is incorrect because population does not directly affect supply. Option D is incorrect because neither curve shifts leftward. Hence, Option A is correct.

Initial Equilibrium Demand: qD = 200 − p Supply: qS = 120 + p At equilibrium, 200 − p = 120 + p 80 = 2p p = 40 Substituting into either equation, q = 120 + 40 = 160 New Equilibrium New demand: qD = 300 − p At equilibrium, 300 − p = 120 + p 180 = 2p p = 90 Substituting into either equation, q = 120 + 90 = 210 Therefore, Δq = 210 − 160 = 50 Hence, Option D is correct.

When the price of an input rises, firms face higher production costs, causing the marginal cost (MC) of production to increase. As a result, firms supply less output at every price, shifting the market supply curve leftward. With market demand unchanged, the reduced supply creates excess demand at the original equilibrium price. Buyers compete for the reduced quantity available, causing the equilibrium price to increase. Thus: Assertion (A): True Reason (R): True Reason correctly explains the Assertion. Hence, Option C is correct.

The logical adjustment process is: Step 2: Input prices increase, causing the marginal cost of production to rise. Step 4: Higher marginal cost shifts the market supply curve leftward to SS₂. Step 3: At the original equilibrium price, excess demand develops, causing consumers to bid up the price. Step 1: The market reaches a new equilibrium with a higher price and a lower quantity. Thus, the correct sequence is: 2 → 4 → 3 → 1 Therefore, Option C is correct.

In a perfectly competitive market with free entry and exit, firms earning supernormal profits attract new firms into the industry. As new firms enter: The market supply curve shifts rightward. Market supply increases while market demand remains unchanged. The increased supply causes the market price to fall. The fall in price continues until firms earn only normal profit, eliminating all supernormal profits. Therefore, the blanks are: fall supernormal Hence, Option C is correct.

Under free entry and exit in a perfectly competitive market: P>Minimum AC→ Firms earn supernormal profits, encouraging new firms to enter the industry. Therefore, 1 → a. P<Minimum AC → Firms incur losses, causing existing firms to exit the industry. Therefore, 2 → b. P=Minimum AC → Firms earn normal profit, representing the long-run equilibrium. Therefore, 3 → c. Firm's supply when P<Minimum AC → In the long run, firms cannot cover their costs and stop production, implying zero output. Therefore, 4 → d. Thus, the correct matching is: 1 → a, 2 → b, 3 → c, 4 → d Hence, Option D is the correct answer.

When both demand and supply shift in the same direction: Statement I: If both shift rightward, equilibrium quantity definitely increases, while the equilibrium price may increase, decrease, or remain unchanged depending on which shift is larger. - Correct. Statement II: If both shift leftward, equilibrium quantity definitely decreases, while the equilibrium price remains ambiguous. - Correct. Statement III: It states that when both curves shift leftward, the price strictly decreases. This is incorrect because the equilibrium price depends on the relative magnitudes of the demand and supply shifts. It may increase, decrease, or remain unchanged. Therefore, only Statements I and II are correct. Hence, Option C is correct.

A rightward shift in demand tends to increase equilibrium quantity, whereas a leftward shift in supply tends to decrease equilibrium quantity. Since these two effects work in opposite directions, the final change in equilibrium quantity cannot be determined without knowing the relative magnitudes of the two shifts. Therefore, equilibrium quantity may: Increase, Decrease, or Remain unchanged. However, the equilibrium price definitely increases, because both shifts push the price upward. Hence, Option B is correct.

Initially, the market equilibrium is determined by: QD=a−P QS=b+P After both the demand and supply curves shift rightward by 40 units, the new equations become: QD=(a+40)−P QS=(b+40)+P At the new equilibrium, (a+40)−P=(b+40)+P Since 40 is added to both sides, it cancels out: a−P=b+P This is exactly the same equilibrium condition as before. Therefore, the equilibrium price does not change. Since the initial equilibrium price is ₹40, the new equilibrium price is also ₹40. Hence, Option C is the correct answer.

When both the demand curve and the supply curve shift leftward simultaneously: A leftward demand shift reduces equilibrium quantity. A leftward supply shift also reduces equilibrium quantity. Since both shifts reduce equilibrium quantity, the effect on quantity is definite (unambiguous). However, the effect on equilibrium price is ambiguous: A leftward demand shift tends to reduce price. A leftward supply shift tends to increase price. The final change in equilibrium price depends on which shift is larger. Therefore, the correct blanks are: Decrease Ambiguous Hence, Option B is correct.

In the fixed firms case, the effects of individual demand and supply shifts on equilibrium are as follows: Demand shifts right → Price rises and quantity rises. Therefore, 1 → a. Demand shifts left → Price falls and quantity falls. Therefore, 2 → b. Supply shifts right → Price falls and quantity rises. Therefore, 3 → d. Supply shifts left → Price rises and quantity falls. Therefore, 4 → c. Thus, the correct matching is: 1 → a, 2 → b, 3 → d, 4 → c Hence, Option B is the correct answer.

The Assertion (A) is false because an increase in supply shifts the supply curve rightward, resulting in: A lower equilibrium price. A higher equilibrium quantity. Thus, equilibrium quantity increases, not decreases. The Reason (R) is true because a rightward shift in supply lowers the market price. The lower price increases quantity demanded, leading to a higher equilibrium quantity. Therefore: Assertion (A): False Reason (R): True Hence, Option D is correct.

The passage states that under free entry and exit, the market reaches long-run equilibrium when the equilibrium price equals the Minimum Average Cost (Minimum AC) of firms. It further specifies that the equilibrium price is: P0=₹20 Therefore, Minimum Average Cost = ₹20 Since the passage explicitly gives this value, Option D is the correct answer.

The market demand equation is: QD=200−P The passage states that the equilibrium price is ₹20. Substituting this value into the demand equation: QD=200−20=180 Therefore, the equilibrium quantity is 180 units. Hence, Option B is the correct answer.