question archive How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand to verify the answers
How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand to verify the answers
Subject:MarketingPrice:2.88 Bought3
How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand to verify the answers.
a. Demand increases and supply is constant.
b. Supply increases and demand decreases.
c. Demand increases and supply decreases.
d. Demand decreases and supply decreases.
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a. Demand increases and supply is constant: This will cause increase in equilibrium price and equilibrium quantity.
b. Supply increases and demand decreases: This will cause fall in equilibrium price but change in equilibrium quantity depends on the magnitude of shifts in supply and demand curve.
c. Demand increases and supply decreases: This will cause rise in equilibrium price but change in equilibrium quantity depends on the magnitude of shifts in supply and demand curve.
d. Demand decreases and supply decreases: This will cause fall in equilibrium quantity but change in equilibrium price depends on the magnitude of shifts in supply and demand curve.
