Market Equilibrium

Increase in consumer income (for normal goods), Increase in population, Favorable change in consumer preferences

A rightward shift in demand means consumers want more of the good at every price level. This happens when income increases (for normal goods), population grows, or preferences favor the good. Decrease in substitute prices and increase in input costs don't directly shift demand rightward.

Minimum average cost

With free entry and exit, firms enter when there are supernormal profits and exit when there are losses. In equilibrium, price equals minimum average cost, ensuring firms earn only normal profit with no incentive to enter or exit.

Quantity supplied exceeds quantity demanded, Downward pressure on price

Excess supply occurs when producers want to sell more than consumers want to buy at the current price. This creates downward pressure on price as firms compete to sell their excess stock. Consumers not getting desired quantity indicates excess demand, not supply.

A maximum price set by the government

A price ceiling is an upper limit on price imposed by the government. It is typically set below the equilibrium price to make essential goods affordable for consumers, but it can create shortages.