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If demand decreases and supply is constant, the price will increase.
Yes. Equilibrium is created at the intersection of the Demand curve and Supply Curve. Equilibrium can be shifted if the Demand curve increases or decreases, and the same happens when the Supply curve increases or decreases. Without demand, you would just have a Supply curve.
It goes up
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
price rises and quantity increases
If demand decreases and supply is constant, the price will increase.
Yes. Equilibrium is created at the intersection of the Demand curve and Supply Curve. Equilibrium can be shifted if the Demand curve increases or decreases, and the same happens when the Supply curve increases or decreases. Without demand, you would just have a Supply curve.
It goes up
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
price rises and quantity increases
The supply and demand curve follows four basic laws :If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.
Price decreases while the quantity increases...i think!!!I am improving this answer because this guy's answer is wrong. If supply decreases while demand remains the same price will go up while quantity goes down.
In this case supply of goods surplus in the market and then their is cahnce to decreases in prices for the purpose of rises in demand.
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
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Equilibrium is the point where demand = supply