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Class 12
Micro Economics
Market Equilibrium
how are the equilibrium price and quantity affecte...

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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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?

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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?

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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?