Page 7 - Home Assignment-Price determination
P. 7
As decrease in demand is equal to the decrease in supply then it will
create neither any stock or any deficit in the market. As a result the
equilibrium price will remain constant at OP 1 and quantity will decrease
2
toOq respectively
Case-2
If increase in demand is equal to increase in supply then equilbrium price
will remain constant and equilibrium quantity will increase
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.
