I.CHOOSE THE CORRECT ANSWER: 1. Equilibrium price equalizes demand and supply. 2. Supply is constant in very short period. II.WRITE A SHORT NOTE: 1. Equilibrium price. There is only one price at which the preferences of seller and buyer meet together. At a particular price, the quantity demanded and a quantity supplied will become equal. At this price quantity bought and quantity sold will be equal. 2. Short periods During the short period, supply can be altered to some extent only. Supply cannot be fully altered to the demand changes. Raising demand increases the price lightly and a falling demand…
