Question

Discuss how the equilibrium price and quantity change when a change in demand occurs and the...

Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply stays constant, and when a change in supply occurs and the demand stays constant.

Homework Answers

Answer #1

Answer - When the supply is constant

1 - Demand increase - The increase in demand will shift the demand curve to right , the price will increase and so will the quantity

2 - Demand decrease - The decrease in demand will shift the demand curve to left , the price will decrease and so will the quantity

When demand is constant

1 - Supply increase - due to the increase in the supply , the supply curve will shift to right , the equlibrium price will fall and quantity will rise.

2 - Supply decreases - Due to the decrease in the supply , the supply curve will shift to left . The equilibrium price will increase and the quantity will decrease.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Discuss how the equilibrium price and quantity change when a change in demand occurs and the...
Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply stays constant, and when a change in supply occurs and the demand stays constant.
Discuss how the equilibrium price and quantity change when a change in demand occurs and the...
Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply stays constant, and when a change in supply occurs and the demand stays constant.
Discuss what happens to the equilibrium price and quantity of Colgate Toothpaste when there is a...
Discuss what happens to the equilibrium price and quantity of Colgate Toothpaste when there is a decrease in the supply of Colgate Toothpaste but no change in the demand. What could cause a decrease in the supply of Colgate Toothpaste but no change in demand?
Show, using a supply & demand graph, the effect on the equilibrium price and quantity of...
Show, using a supply & demand graph, the effect on the equilibrium price and quantity of the good in question of the following events. Assume markets are initially in equilibrium. These are qualitative answers. An original and new market equilibrium on the graph is needed. Show that clearly. The market for Apples is initially in equilibrium. Suppose the price of Pears, a substitute for Apples, declines while at the same time more Apple Orchards are opened, so more firms enter...
Question 1. A. What happens to the equilibrium price and quantity of hamburgers when the price...
Question 1. A. What happens to the equilibrium price and quantity of hamburgers when the price of tacos, a substitute, falls? How have the supply and demand curves for hamburgers shifted? Draw a graph showing these shifts. B. What happens to the equilibrium price and quantity of hamburgers when the price of cattle feed increases? How have the supply and demand curves for hamburgers shifted? Draw a graph showing these shifts. C. What happens to the equilibrium price and quantity...
When there is a decrease in supply, all else held equal, equilibrium price falls, demand increases,...
When there is a decrease in supply, all else held equal, equilibrium price falls, demand increases, and equilibrium quantity increases. equilibrium price falls, demand does not change, and equilibrium quantity increases. equilibrium price rises, quantity demanded decreases, and equilibrium quantity decreases. equilibrium price falls, quantity demanded decreases, and equilibrium quantity decreases. equilibrium price rises, demand does not change, and equilibrium quantity increases.
1. Occurs when quantity supplied > quantity demanded at a given price Excess supply (is this...
1. Occurs when quantity supplied > quantity demanded at a given price Excess supply (is this correct) Result in elasticity Result in equilibrium price Excess demand 2. Which of the following statements is true The supply curve shows the relationship between quantity demanded and price of the good or service The Law of Demand helps to explain social behavior In the law of supply, an increase in price results in an increase in quantity supplied. (Is this correct) When consumer...
When the demand curve shifts, the change in equilibrium price will be smaller the closer the...
When the demand curve shifts, the change in equilibrium price will be smaller the closer the price elasticity of supply is to 0. T/F and why?
If demand increases and supply increases: equilibrium price will increase and equilibrium quantity will decrease. equilibrium...
If demand increases and supply increases: equilibrium price will increase and equilibrium quantity will decrease. equilibrium price will be uncertain and equilibrium quantity will decrease. equilibrium price will be uncertain and equilibrium quantity will increase.
Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are...
Find the equilibrium quantity and equilibrium price for the commodity whose supply and demand functions are given. ​Supply:p=120q  Demand: p= - q2 +16,000 The equilibrium quantity is q = ------------ at price p=​ $ -------------.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT