Question

How is equilibrium quantity demanded and supplied of a commodity
affected when
(a) its demand increases but supply remains the same(b) its supply increases but demand remains the same
(c) its demand decreases but supply remains the same
(d) its supply decreases but demand remains the same.

Answer 1

Answer:

If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. ... However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa