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SAI INTERNATIONAL SCHOOL

                                                 ECONOMICS


                                                 (MODULE 79)


                                                      Class-XI

                                                  CHAPTER 4



                                            PRICE DETERMINATION

               TOPIC-

               -       Impact on equilibrium price and output when there is a simultaneous

                       increase in both demand and supply

               -       Impact on equilibrium price and output when there is a simultaneous
                       decrease in both demand and supply



               Impact on equilibrium price and output when there is a simultaneous increase in
               both demand and supply: -

                     Case-1

                              If increase in demand is more than increase in supply then both
                              equilbrium price and quantity will increase.



                                                 Y















                                                                                    X


                              In the abovediagram as the increase in demand is more than
                              increase in supply the equilibrium price and quantity increases to
                                           2
                                 2
                              OP and OQ  respectively.
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