Class 12 Economics - Chapter 5: Market Equilibrium
Learn about market equilibrium, demand-supply interaction, and the impact of government interventions in Class 12 Microeconomics Chapter 5. NCERT-based insights and graphs.
Overview
This chapter deals with the concept of market equilibrium where demand and supply intersect. It explains how equilibrium price and quantity are determined in competitive markets and how changes in demand or supply affect the equilibrium.
Why This Chapter Matters
Understanding market equilibrium helps explain real-life scenarios like price fluctuations and shortages/surpluses. It builds analytical skills for evaluating policy interventions like price ceiling and price floor.
Real-Life Applications
- Determining equilibrium price and quantity through demand and supply analysis.
- Analyzing the effects of shifts in demand or supply on market equilibrium.
- Understanding the impact of government interventions such as price ceiling and price floor.
Skills You Will Learn
- Drawing and interpreting demand-supply diagrams.
- Predicting market outcomes with changes in external conditions.
- Explaining real-world market distortions using economic reasoning.
Explore and Test Your Knowledge
Practice Test
Test your knowledge with our practice test.
Scheduled Talent Test
Participate in the weekly talent test for this chapter.
Flashcards
A: It is the point where quantity demanded equals quantity supplied, determining the market price and quantity.
A: Any change in demand or supply, such as changes in income, tastes, or input prices.
A: A maximum price set by the government below the equilibrium price, leading to excess demand.
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