Question

Q13. Explain the chain reaction when demand is constant but supply changes
(all 3 cases with data and diagrams)​

Answer 1

Answer:

The Shift in Demand and Supply

Definitely, if there is any change in supply, demand or both the market equilibrium would change. Let’s recollect the factors that induce changes in demand and supply:

Shift in Demand

The demand for a product changes due to an alteration in any of the following factors:

Price of complementary goods

Price of substitute goods

Income

Tastes and preferences

An expectation of change in the price in future

Population

Shift in Supply

The supply of product changes due to an alteration in any of the following factors:

Prices of factors of production

Prices of other goods

State of technology

Taxation policy

An expectation of change in price in future

Goals of the firm

Number of  firms

Now let us study individually how market equilibrium changes when only demand changes, only supply changes and when both demand and supply change.

Explanation:

please mark as brainlist