Page 4 - Home Assignment-Price determination

SAI INTERNATIONAL SCHOOL

ECONOMICS

(MODULE 78)

Class-XI

CHAPTER 4

PRICE DETERMINATION

TOPIC-

 Impact of change in demand on equilibrium price and quantity,

supply remaining constant.
 Impact of change in supply on equilibrium price and quantity,
demand remaining constant.
 Special cases.

Impact of change in demand on equilibrium price and quantity, supply
remaining constant.
Case: - 1

Supply remaining constant with the increase in demand both the

equilibrium price and quantity will increase.

Y
S
Pri

|
ce

|
E
P F

|

D

X
|
O Q Quantity demanded
and quantity supplied

 In the above diagram the equilibrium price ‘OP’ and quantity ‘OQ’
is determined at point ‘E’ where market demand = market supply.