Question

in which situation does demand decrease or increase??​

Answer 1

When the increase in demand is equal to the decrease in supply, the shifts in both supply and demand curves are proportionately equal. Effectively, the equilibrium quantity remains the same however the equilibrium price rises..

Answer 2

When the decrease in demand is greater than the increase in supply, the relative shift of demand curve is proportionately more than the supply curve. Effectively, both the equilibrium quantity and price fall. Here, the leftward shift of the demand curve is less than the rightward shift of the supply curve..

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