Question

why does an indeterminate case occur? Give an example of such a case

Answer 1

ANSWER-

An indetermine case is the situation when we don't know the change or shift in demand and supply curve of goods and services.

FOR EXAMPLE -

1. As we do in jwellary. At a point of time we are expecting the price of jewel will increase and the government decided to tax the production of jwellary. In this case, there are two possibilities of price shifting. When we expect the jewellary price to be rise, we will demand more goods of low prices as from next day the jewellary rate is going to increase which cause price curve shifts rightward. And when the government will decided to tax the production, it demands will decreases and its curve will also shifts leftwards. So, in this case price cannot be determine and hence an indeterminate case occur when the shift of demand and supply curve of goods or services is indeterminated.