equlicbrium effect of locla market
Answers
Answer:
A decrease in supply is illustrated by a leftward shift of the supply curve - this cause the equilibrium price to rise.. when the both the dimand and supply curves increase ,both the curves will shift to the right and quantity increase but the price is ambiguous..
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Answer:
Hey mate your answer is:-
Equilibrium occurs when the price is such that the quantity that consumers wish to buy is exactly balanced by the quantity that firms wish to supply, again there is no tendency for price to change. ... A market will never start in equilibrium but price changes will cause it to move towards equilibrium.
Market equilibrium is a market state where the supply in the market is equal to the demand in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market.