Page 4 - Home Assignment-Price determination

result the equilibrium price will remain constant at OP 1 and
2
quantity will decrease toOq respectively.
 Case-3
If decrease in demand is less than decrease in supply then the
equilbrium price will increase and the equilibrium quantity will

fall.
Y

X

As decrease in demand is less than the decrease in supply then it
will create excess demand in the market. In order to overcome the

excess demand situation the equilibrium price will rise to OP 2 and
2
quantity will decrease toOq respectively.