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If the prevailing market price is above the equilibrium price, there will be excess supply. Producers are not able to sell all they want to sell, resulting in competition among the sellers. Price starts falling. As a result, demand starts rising and supply starts falling. These changes continue till the equilibrium is reached.

Detailed Answer:

If the price prevailing in the market is above the equilibrium price then the firms will supply more quantity of a commodity and the consumers will demand less quantity of the commodity. Thus, it will distort the situation of equilibrium in the market. There will be a situation of excess supply. In such a case, competition among the sellers will pull down the market price to equilibrium price, by the way of expansion in demand and contraction in supply.

Monopoly: The word monopoly is a Latin word. It is composed of two words:

(i) Mono-which means single, and (ii) Poly-which means seller.

Thus, monopoly, is a market situation in which there is a single seller of a good with no close substitutes.

Main Features of Monopoly:

(i) Single Seller / Producer of the product- Monopoly is said to exist when there is only one seller of the product. A monopolist may be the only person, a few partners or in the form of a joint stock company. In simple words. In Monopoly, the number of buyers are large. No one buyer can influence the price by his individual actions.

(ii) No Close Substitutes-The product produced by a monopolist has no close substitutes. So, the monopoly firm has no fear of competition from new or existing products.

(iii) Restrictions on Entry of New firms-In a monopoly type of market, there is strict barrier on the entry of new firms. Monopolists faces no competition.

Oligopoly is a form of market in which there are few big sellers of a commodity and a large number of buyers. Each seller has a significant share of the market.

True. Under monopoly firms is price maker. At that price the producer can sell the quantity which permits him. Therefore, for every price there is a quantity and for every quantity there is a price.

(i) True. Because when the prevailing market price is higher than the equilibrium price there will be excess supply, and since the sellers will not be able to sell all they want to sell, there will be competition among sellers.

(ii) True. Excess supply occurs when the market price is greater than the equilibrium price. This leads to commodity among sellers as a result of which price starts falling and again market price becomes equal to equilibrium price.

A perfectly competitive firm cannot make extra-normal profits  in the long run.

Suppose equilibrium price is Rs.4 per unit and market price is Rs.3. At this market price demand is greater than supply.

This will result in competition among buyers resulting rise in price. When price rises to Rs4, DD = SS or 20 = 20.

Excess Demand: Excess Demand for a good in a mart occurs when actual price of the good is lower than the equilibrium price.

Suppose market price is Rs.1 per unit then demand in market is for 10 units and supply is for 2 units only. This induces competition, suppose market price is Rs.2 then demand for that commodity is 8 units but supply is for 4 units. The same reaction will prevail in the market. However, supply increases from 2 to 4 units.

These changes stop at Rs.3 when market price is equal to equilibrium price and demand is equal to supply = 6 units.

Price Ceiling: Price ceiling means the maximum limit that the government imposes on the price of a commodity. Price ceiling are used by the government to Prevent prices from being too high.

The main reason for imposing price ceilings is to protect the interests of the consumers in situations in which they are not able to afford needed commodities. For example, during the recent rise in the prices of pulses.

Consequence:

Shortage of the commodity and Rationing: In case of price ceiling the quantity actually supplied in the market will shrink; as a result, a large chunk of consumer’s demand will go unsatisfied. To deal with such a situation the government may resort to rationing of the commodity.

For some Crops tall in price below a certain level is not good for the farmers. Hence, the government fixes minimum price for these crops.

Detailed Answer:

When government fixes price of a product at a level higher than equilibrium price, it is called 'support price'. It is the minimum price the producers must be paid for their product. Support price is fixed for some crops to safeguard the interest of producers. Basically the main aim of firing support price is to insulate and protect the farmers from fluctuations in their income which is caused by price variations in the free market.

1. The case study was about the handlooms in Mangalagiri.

2. Veeraiah

3. A master weaver

4. Mangalagiri is famous for its sarees and fabrics produced by handicraft weaving.

5. Their English teacher

Correct option is D) Taiwan

Correct option is C) Japan

C) war lords

B) Party of Young Annam

Correct option is D) Nigeria

A) David livingston

1. The men are fighting.

2. The men are using maces (gadha) to fight.

3. We see such fight scenes in wars during the times of kings.

4. Yes, I can name some world famous personalities. For example, Virat Kohli from cricket, Kalam from science and technology, Narendra Modi from politics, P.V. Sindhu from tennis.

5. It is their skill that makes them great.

Yes, I know the success story of Sudha Chandran. She is an Indian film actor and a famous Bharatanatyam dancer. She overcame her disability of losing her right leg in an accident and danced again with great courage and determination.

Albert Einstein, Stephen Hawking, George Washington, Helen Keller, Franklin D. Roosevelt, Ludwig Van Beethoven, Nik Vujicic, Rowan Atkinson, Walt Disney are some of the successful personalities with disabilities. They proved that their disability couldn’t stop them from achieving their goals.

The sports on the cowslips are compared with rubies.

The poem ‘A Fairy Song’, refers to a fairy that serves his/her fairy queen. He/She spreads the dew on the flower everywhere he/she crosses. He/She wanders many places to do this work like hills, pales and so on.

The fairy flies over hill and open river valleys, through bushes and prickly plants, above parks and fences, through floods and fire.

The fairy travels everywhere faster than the moon revolves around the earth. The fairy serves the Fairy Queen.

The fairy works for the fairy queen and must deliver dewdrops (orbs here refers to the spherical shape of the drops) on the greenery around. This includes delivering dewdrops to the cowslips – a yellow flower with tall slender stems. The cowslips are therefore indebted to the fairy queen and therefore become her pensioners.

In their yellow gold petals being referred to as coats… thus personifying it in a way, you can see spots. The spots are red in colour and therefore look like rubies. If you have seen a cowslip, you will notice it has red spots in the centre. The poet says this is possible because of the favour the fairy does to the cowslips by delivering dew to them. The red spots are compared to freckles that appear at the peak of a cowslip’s life.

The fairy finally says that he/she must look for more dewdrops that have been compared to pearls so that he/she can hang them in every cowslip’s ear. Again this is a personification where the cowslip is given a human quality of having an ear that can be fashioned with a pearl.

He wanders faster than the moon.

When a demand of a commodity increases with the rise in its price and demand of a commodity decreases with the fall in its price, the demand curve will slope upward due to this similar directional changes.

The fairy wanders over hills, dales, parks and pales and through bushes, briers, floods and fire.

Answer is (c) pearl

The fairy serves the Fairy Queen.

The demand curve is a graphical statement or representation of quantities of a good which will be demanded by the consumer at various possible prices in a period of time.

Two factors which influence the demand for a commodity are income of the consumer and price of a commodity.

Because coffee is the substitute of tea, if the price of tea increases, then public will prefer to take coffee in view of increased tea price.

Correct answer is (d) inverse

Expectation.

If the price of one commodity falls, then the demand of other commodity decreases, in contrast, when the price of one commodity rises, then the demand of other commodity increases.

A rightward shift of production possibility curve indicates that resources have increased.

Al-Biruni was conscious of the problems involved in understanding strange countries. He has mentioned three things that proved difficult:

1. The first problem was language – Sanskrit was quite different from Arabic and Persian languages. It was not easy to translate the concepts from one language into another.

2. The second problem was the differences in religions and rituals.

3. The third problem was the secluded people who were interested only in their things. They looked at foreigners with suspicion and were not willing to mingle with them freely.

The country had taken special measures to encourage traders. Along most trade routes, there were guest houses and inns. The postal system in India surprised Ityi Battuta. This helped the merchants to send their goods to distant places and also to repay-their debts. The postal system was efficient. From Sindhi it took only a few days for goods to reach Delhi. The news sent by the spies would reach the Sultan in just five days.

Ibn Battuta has said that there were two types of posts in India -the horse post and the footmen post. Horse post was called ‘uluq’. Royal horses were posted every 4 miles and his helped in making communication fast. The footmen-post was called ‘dawa’. ‘Dawa’ means 1/3 of a mile. Within a mile, there were 3 camps for the footmen.

Al-Biruni accepted the Class distinctions as put forward by Brahmins. But he did not approve of the untouchability practised by them. He said that things that were impure would always try to get back their purity and succeed.

For example, the sun purifies the air. The salt in sea-water prevents it from getting polluted. Without this natural purification, life would be impossible on this earth. He argued that untouchability is against natural laws.

The ideas of Al-Biruni exercised a powerful influence in the study of Sanskrit books. The rules regarding Varna System were formulated favouring the Brahmins. In real life, Varna was not so strict. For example, the antyaja (who were born outside the Varna System) were expected to work for the agriculturists and zamindars for small wages. Although they were socially suppressed, they were included in the economic activities.

1. As a help to those who wanted to discuss religious issues with Hindus.

2. As a storehouse for those who like to live with Hindus.

• Social Condition of India. 
• Child marriage. 
• Widows were not allowed to remarry.
• Practice of Sati was in vogue. 
• Uncultured people were polytheists, but the cultured classes' believed in one god.
• No one popular Religion of India at that time. 
• About 42 religions in the country. 
• Hinduism was divided into number of sects.

AI-Biruni was born at Khwarisnr in Uzbekistan. Khwarism was an important centre of knowledge and so he got the best education possible. He was a linguist – a scholar in many languages. He knew Syriac, Arabic, Persian, Hebrew and Sanskrit. He was not familiar with Greek. But he had read the books of Plato and other Greek philosophers through Arabic translations.

In 1017 Sultan Mahmud Gazni attacked Khwarism. He made many people prisoners and took them to Gazni. Al-Biruni was one of them. Although he came to Gazni as a prisoner, he began to like the place. He entered the services of Mahmud Gazni and remained in Gazni until he died at the age of 70.

Things to be considered:

1. The non-progressive East

2. Problem of land ownership

3. Middle Class

4. Village Communities

5. Mughal Nation

6. Cities

7. Sati

Ibn Battuta and Bemier wrote their travel notes with their different views. Ibn Battuta was attracted by the newness and strangeness of things. He wrote about all the things that interested and impressed him. But Bernier’s descriptions were quite different. He gave more importance to negative things. He was interested in the contrasts he found between the things in Europe, especially in his country, France, and here, he wanted to influence the rulers to take just decisions.

Bernier presented India on the model of the binary opposition. This way India was presented as directly opposite to Europe. He also presented the differences between India and Europe on a comparative scale. India was at the lowest rung of the ladder. In short, Bernier felt that India was inferior and worse than the Western countries.

Bernier talked about land ownership in India. There was no private ownership of land here. The land here belonged to the king. The king divided the land among his lords. This was not good as people did not take an interest in developing the land and invest in the land for long term purposes.

Bernier says that there was no Middle Class in India. There were only 2 classes – the poor and the rich. The poor were the majority and they were suppressed by the ruling minority. There were too poor and too rich people, but there was no middle state. Bernier did not have a good impression about the Mughal Empire and its rulers.

The village communities were poor. They were often mistreated by the cruel landlords. Since there was no private land, people were not willing to work hard. Taxes were heavy. On the whole life in the village was unpleasant.

Bernier thought that the Mughal rulers were more interested in their comfort and luxury. They were not much worried about the welfare of the subjects. To Bernier Indian cities were Camp Towns. But his views are contracted by modem historians Bemier himself wrote to say that there were large scale exports from the country. Naturally from camp towns, they could not have exported a lot of things. For that, they would need manufacturing cities, trade cities and port cities. One touching description in Bernier’s writing is the description of Sati.

The widow in his description was a girl of about 12. He witnessed this piteous incident J in Lahore. This is what he wrote: “In Lahore, I saw a girl of 12 giving up her life in the pyre of her husband. She came to the pyre like a dead person. She was trembling with fear. She was crying piteously. I can’t describe the pain she must have been experiencing then. With the help of an old woman, 4 Brahmins performed the rituals. That woman forced the girl to sit on the pyre. To prevent her from running away her hands and legs were tied. That poor girl was burnt alive.”

We must admit that Bernier was often prejudiced against the East. But his descriptions offer us valuable information about the society and its ways of life at the time of his visit to India.

Correct option is (a) Satavahana

Paithan, Ter, Bhokardan, Kolhapur were recognised as important trade centres of the Satavahana period.

King Dantidurg was the founder of the Rashtrakuta Dynasty.

The Caves at Ajanta, Nashik, Karla, Bhaje, Kanheri, Junnar in Maharashtra were carved during the Satavahana period.

Both have written them accounts in their different prospectives. While Ibn Battuta describe everything that impressed and excited him because of his novelty, Bernier had followed a different intellectual tradition. He wrote whatever he saw in India. 

Bernier wanted to pin point the weakness of the Indian society and considered the Mughal India Inferior to European society. In his description Ibn Battuta recorded his observation about new culture, people, believes and values.

• It's written by AL-Biruni in Arabic. 
• It's simple, lucid and easy to understand. 
• It has 80 chapters. 
• Varied topics e.g. religion, philosophy to customs, social life, metrology.
• Most of chapters beginning with a Questions followed by a description and concluded with a comparison with other culture.

Correct option is (c) Madurai

Correct option is (b) Tamil Nadu

220 dinars of red gold.