Question

Ans) 1) When price is above the equilibrium price, there is surplus i.e quantity supplied exceeds quantity demanded.

When price is below equilibrium price, there is shortage i.e quantity demanded exceeds quantity supplied.

So, here, there will be surplus as price is above equilibrium price.

2) When there is increase in number of consumers, demand increases and demand curve shifts to the right. Both price and quantity increases.

3) With increase in popularity of soybean, demand for soybean will increase. Demand curve will shift to the right. Both price and quantity will increase.

4) With increase in income, demand will increase and with increase in technology, supply will also increase. As a result, both supply and demand curve will shift to the right. And quantity will increase but change in price will depend upon the magnitude of shift of demand and supply curve.

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