Question

draw and label each complex equilibrium analysis

1. Demand increases supply increases

2. demand decreases supply increases

3. demand increases supply decreases

4. demand decreases supply decreases

Answer 1

1.

When demand and supply both increases the quantity consumed increases for the same price

2.

When demand and supply increases the quantity consumed remains the same for but the price decreases

3.

When demand increases and supply decreases the quantity consumed remains the same but the price increases

4.

When demand and supply decreases the quantity consumed reduces and the price too increases