Describe the impact of increase in both demand and supply on equilibrium.

Answers

  • Réponse publiée par: tayis

    answer:

    the impact of an increase in both demand and supply on equilibrium would its effect on equilibrium price (pe)   and equilibrium quantity (qe). as demand and supply increases, the impact would be a rise in the equilibrium quantity (qe). however, its impact on equilibrium price (pe) varies upon the rate of increase in either demand or supply. see the explanation below regarding the impact of varying rates of increase in demand and supply on price equilibrium   (pe) .

    explanation:

    first, when the increase in demand is greater than the increase in supply, the impact would be an increase in equilibrium price   (pe) and equilibrium quantity (qe).

    second, when the increase in supply is greater than the increase in demand, the impact would be a fall in the equilibrium price (pe) and a rise in equilibrium quantity (qe).

    however, when demand and supply both went up at the same rate (meaning the percentage of increase in demand and supply is equal) then, the impact would be a rise in equilibrium quantity (qe) but the impact on price equilibrium (pe) will be indeterminate.

  • Réponse publiée par: elaineeee

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    Explanation:

  • Réponse publiée par: joyce5512

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    O-Operasyon

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Describe the impact of increase in both demand and supply on equilibrium....