Page 2 - Home Assignment-Price determination

 Case-2

If increase in demand is equal to increase in supply then
equilbrium price will remain constant and equilibrium quantity
will increase.
Y

X

In the abovediagram as the increase in demand is equal to

increase in supply the equilibrium price remains constant at OP 1
2
and quantity increases to Oq respectively.
 Case-3
If increase in demand is less than increase in supply then both

equilbrium price will fall, but equilibrium quantity will increase.
Y

X

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