Chapter 9 of 19
Revision Notes
Equilibrium Price — Revision Notes
ICSE · Class 12 · Economics
Equilibrium Price revision notes for ICSE Class 12 Economics: 4 topics in quick points. Part of the ICSE Class 12 Economics syllabus.
45 questions38 flashcards5 concepts
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Key Topics to Revise
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1. Meaning and Nature of Equilibrium Price
- Consumer is willing to pay maximum price equal to marginal utility.
- Producer is prepared to accept minimum price equal to marginal cost of production.
- The market of a good consists of three essentials: demand, supply, and market equilibrium.
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2. Determination of Equilibrium Price under Perfect Competition
- At equilibrium price ₹4, demand and supply of X are equal at 50 units each.
- At price ₹3, demand is 60 and supply is 40, so excess demand is created.
- At price ₹5, supply is 60 and demand is 40, so excess supply is created.
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3. Assumptions of Market Equilibrium
- Demand curve slopes downward from left to right.
- Supply curve slopes upward from left to right.
- There is no government intervention in the market.
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4. Excess Demand and Excess Supply: Comparison
- Excess demand means Qd > Qs.
- Excess supply means Qs > Qd.
- Excess demand may arise due to rise in income, rise in price of substitute, or decrease in supply.
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Full NotesKey Concepts
Equilibrium price is the price atMarket equilibrium refers to the stateExcess demand occurs when quantity demandedExcess supply occurs when quantity suppliedAn increase in demand raises both
Frequently Asked Questions
What are the important topics in Equilibrium Price for ICSE Class 12 Economics?
Key topics in Equilibrium Price include Meaning and Nature of Equilibrium Price, Determination of Equilibrium Price under Perfect Competition, Assumptions of Market Equilibrium, Excess Demand and Excess Supply: Comparison. Study these first, then practise questions on each for the ICSE Class 12 board exam.
How should I revise Equilibrium Price for the ICSE Class 12 board exam?
Learn the core ideas first, then work through the 45 practice questions on Equilibrium Price. Revise definitions regularly and use flashcards for quick recall before the exam.
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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