Explain the chain effects increase in market demand is less thandecreasein in market supply
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- Market Equilibrium It refers to a situation of market in which market demand for a commodity is equal to its market supply, i.e. a situation, which is stable.
2.Equilibrium Price It is the price at which market demand is equal to market supply.
3.Equilibrium Quantity It is the quantity which corresponds to equilibrium price.
4.Assumptions of Equilibrium
(i)Demand curve should always have a negative slope.
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