Question

Explain the effect of time element on equilibrium price with diagram.​

Answer 1

Explanation:

Evidently as demand increases, the market price rises correspondingly and when demand decreases, the price also decreases to that extent. The point is clarified in figure (B). A shift in the demand curve from DD to D1D1 means an increase in demand, along with it the new equilibrium price rises from OP to OP1.

Answer 2

Answer:

Evidently as demand increases, the market price rises correspondingly and when demand decreases, the price also decreases to that extent. The point is clarified in figure (B). A shift in the demand curve from DD to D1D1 means an increase in demand, along with it the new equilibrium price rises from OP to OP1.