How are the equilibrium price and quanti | Class 12 Micro Economics Chapter Market Equilibrium, Market Equilibrium NCERT Solutions

Question:

How are the equilibrium price and quantity affected when?

(a) Both demand and supply curves shift in the same direction?

(b) Demand and supply curves shift in opposite directions?

Answer:

When both the demand and supply curves shift in same direction then following will happen:

Cases	Equilibrium Price	Equilibrium Quantity
Increase in demand is equal to increase in supply.	Unchanged	Increases
Increase in demand more than increase in supply	Increases	Increases
Increase in demand less than increase in supply	Falls	Increases
Decrease in demand equal to decrease in the supply	Unchanged	Falls
Decrease in demand more than the decrease in supply	Falls	Falls
Decrease in demand less than decrease in supply	Increases	Falls

(b) Demand and supply curves shift in opposite directions?

Cases	Equilibrium Price	Equilibrium Quantity
Increase in demand is equal to decrease in supply.	Increase	Unchanged
Decrease in demand more than increase in supply	Unchanged	Increases
Decrease in demand less than increase in supply	Decreases	Increases
Decrease in demand is more than increase in the supply	Decrease	Decrease
Increase in demand less than the decrease in supply	Increase	Decrease
Increase in demand more than decrease in supply	Increases	Increase

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Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Market Equilibrium.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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Welcome to the NCERT Solutions for Class 12 Micro Economics - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 16: How are the equilibrium price and quantity affected when? (a) Both demand and supply curves shift....

How are the equilibrium price and quanti | Class 12 Micro Economics Chapter Market Equilibrium, Market Equilibrium NCERT Solutions

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