Q3.

From the following two statements of Assertion (A) and Reasoning (R) suggest the correct code:

Assertion (A): The equilibrium price is decided at the level where the quantity demanded equals the quantity supplied.

Reason (R): At this level excess of demand and excess of supply both remain zero.

Code:

Q4.

Despite differences in cost of production the oligopolists will not vary the prices of their products as per which combination of the following models?

(a) Collusion model

(b) Cournot’s model

(c) Kinked Demand model

(d) Price Leadership model

Select the correct code.

Q5.

For the following two statements of Assertion (A) and Reasoning (R) suggest the correct code:

Assertion (A): Low initial price regarded as the principal means for entering into mass market for some new products.

Reasoning (R): Firms generally enter into production of new products with excess capacity of the plant initially.

Code: