Home / Topic / Demand and supply
Topic Demand and supply
Asked 2 times in CDS over 5 years (2014–2019), peaking in 2014.
Key insights
- Most tested in CDS — 2 of 2 PYQs
- Most asked in 2014
- Recurs across 2 years (2014–2019)
Across exams
CDS · 2How the concept evolved
Long-running — most appearances (1 of 2) predate 2016, and it still returns.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CDS2019
The working of the price mechanism in a free-market economy refers to which one of the following ?
- A The interplay of the forces of demand and supply
- B Determination of the inflation rate in the economy ✓
- C Determination of the economy's propensity to consume
- D Determination of the economy's full employment output
✓ Correct answer: (B)
Economy › Macroeconomics
CDS2014
Which of the following statements is/are true?
- If increase in demand and supply are of equal magnitude, the price will remain unchanged, but the equilibrium quantity will increase
- If increase in demand is of greater magnitude than increase in supply, both equilibrium price and equilibrium quantity will increase
- If increase in supply is of greater magnitude than increase in demand, equilibrium price will fall but equilibrium quantity will increase
Select the correct answer using the code given below:
- A 1 only
- B 1 and 2 only
- C 2 and 3 only
- D 1, 2 and 3 ✓
✓ Correct answer: (D)
Economy › Macroeconomics
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