Practice Test

What is the equilibrium market price ? Price (Rs.) : 1 , Demand (tonnes per annum) ; 1,000 , Supply (tonnes per annum) : 400 ; Price (Rs.) : 2 , Demand (tonnes per annum) ; 900 , Supply (tonnes per annum) : 500 ; Price (Rs.) :3 , Demand (tonnes per annum) ; 800 , Supply (tonnes per annum) : 6000 ; Price (Rs.) : 4 , Demand (tonnes per annum) ; 700 , Supply (tonnes per annum) : 700 ; Price (Rs.) : 5 , Demand (tonnes per annum) ; 600 , Supply (tonnes per annum) : 800 ; Price (Rs.) : 6, Demand (tonnes per annum) ; 500 , Supply (tonnes per annum) : 900 ; Price (Rs.) : 7 , Demand (tonnes per annum) ; 400 , Supply (tonnes per annum) : 1,000 ; Price (Rs.) : 8 , Demand (tonnes per annum) ; 900 , Supply (tonnes per annum) : 1,100 ;

Under oligopoly the kinked demand curve model explains

Assume that consumers' incomes & the number of sellers in the market for good A both decrease.Based upon this information we can conclude ,with certainty , that equilibrium