Question

WHAT ARE THE EFFECTS OF INCREASED MARKETING AND STATE THE EFFECTS ON QUANITY AND PRICE?

Answer 1

Answer:

There are 3 cases of decrease in demand and supply.

1) When both demand and supply decrease in the equal proportion the price will remain same but the equilibrium quantity will decrease.

2) When decrease in demand is more than the decrease in supply both equilibrium quantity and price will decrease.

3) When decrease in demand is less than decrease in supply the equilibrium price will rise and equilibrium quantity will increase.