Question

explain the effects of an increase in both demand and supply of a commodity on its equilibrium price
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Answer 1

Answer:

An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. 1. For any quantity, consumers now place a higher value on the good,and producers must have a higher price in order to supply the good; therefore, price will increase.

Answer 2

Answer:

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