Question

increase in demand always cause a rise in price.

Answer 1

A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. ... For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall.

Answer 2

$\huge\bold\pink{Good Morning!}$

ᴇxᴘʟᴀɴᴀᴛɪᴏɴ :-

ɪғ ᴛʜᴇʀᴇ ɪs ᴀ ᴅᴇᴄʀᴇᴀsᴇ ɪɴ sᴜᴘᴘʟʏ ᴏғ ɢᴏᴏᴅs ᴀɴᴅ sᴇʀᴠɪᴄᴇs ᴡʜɪʟᴇ ᴅᴇᴍᴀɴᴅ ʀᴇᴍᴀɪɴs ᴛʜᴇ sᴀᴍᴇ, ᴘʀɪᴄᴇs ᴛᴇɴᴅ ᴛᴏ ʀɪsᴇ ᴛᴏ ᴀ ʜɪɢʜᴇʀ ᴇϙᴜɪʟɪʙʀɪᴜᴍ ᴘʀɪᴄᴇ ᴀɴᴅ ᴀ ʟᴏᴡᴇʀ ϙᴜᴀɴᴛɪᴛʏ ᴏғ ɢᴏᴏᴅs ᴀɴᴅ sᴇʀᴠɪᴄᴇs.

ʜᴏᴡᴇᴠᴇʀ, ᴡʜᴇɴ ᴅᴇᴍᴀɴᴅ ɪɴᴄʀᴇᴀsᴇs ᴀɴᴅ sᴜᴘᴘʟʏ ʀᴇᴍᴀɪɴs ᴛʜᴇ sᴀᴍᴇ, ᴛʜᴇ ʜɪɢʜᴇʀ ᴅᴇᴍᴀɴᴅ ʟᴇᴀᴅs ᴛᴏ ᴀ ʜɪɢʜᴇʀ ᴇϙᴜɪʟɪʙʀɪᴜᴍ ᴘʀɪᴄᴇ ᴀɴᴅ ᴠɪᴄᴇ ᴠᴇʀsᴀ.

ɪɴ sɪᴍᴘʟᴇ ᴡᴏʀᴅs :-

ᴛʜᴇ ᴘʀɪᴄᴇ ᴅᴏᴇsɴ'ᴛ ᴀʟᴡᴀʏs ɪɴᴄʀᴇᴀsᴇ ᴡʜᴇɴ ᴛʜᴇ ᴅᴇᴍᴀɴᴅ ɪɴᴄʀᴇᴀsᴇs.

ɪᴛ ᴄᴀɴ ᴅᴇᴄʀᴇᴀsᴇ ᴀs ᴡᴇʟʟ. ᴛʜᴇ ᴄᴏɴᴄᴇᴘᴛ ᴏғ ᴘʀɪᴄᴇ ɪɴᴄʀᴇᴀsɪɴɢ ᴡʜᴇɴ ᴅᴇᴍᴀɴᴅ ɪɴᴄʀᴇᴀsᴇs ɪs ᴀssᴜᴍɪɴɢ sᴜᴘᴘʟʏ ɪs ᴄᴏɴsᴛᴀɴᴛ.

ɪғ sᴜᴘᴘʟʏ ɪs ᴄᴏɴsᴛᴀɴᴛ, ᴀ ʜɪɢʜᴇʀ ᴅᴇᴍᴀɴᴅ ᴀʟʟᴏᴡs ғᴏʀ ᴀ ʜɪɢʜᴇʀ ᴘʀɪᴄᴇ ᴛᴏ sᴇʟʟ ᴛʜᴇ sᴀᴍᴇ ɴᴜᴍʙᴇʀ ᴏғ ɢᴏᴏᴅs.

• Question 13 At 6 O' Clock!✋

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