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What happens to price and quantity when both demand and supply decrease. And graphically illustrate?
Wiki User
∙ 12y ago
The first graph is clear. But the second graph shows demand's relation to price and supply.
Now let's say supply decreases; then p will rise (q = constant, p = >).
If demand decreases, then p will decrease as well.
When both curves decrease, you will face different situations. How much have they decreased is the main question. Has demand decreased more or less than supply?
Let's assume this. So then price will decrease as well (compared to Poriginal).
Wiki User
∙ 12y ago
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What happens if demand shifts to the right and supply remains constant?
price will decrease, quantity will decrease.
What happens to quantity supplied when price is lowered?
The price could go up or down (ambiguous) but the quantity definitely would decrease
What happens if demand and supply increase?
the price and value of the item will decrease.
What happens if price falls below the market clearing price?
Quantityi demand increas while quantity supply decrease.
What happens when the demand curve shifts to the right?
there are two things in regards to demand. one is demand the other is quantity demanded. if the demand curve stays the same and supply curve shifts right, the price of the item will decrease and quantity demanded will also decrease
What happens if demand shifts to the right and supply remains constant?
price will decrease, quantity will decrease.
What happens to quantity supplied when price is lowered?
The price could go up or down (ambiguous) but the quantity definitely would decrease
What happens if demand and supply increase?
the price and value of the item will decrease.
What happens if price falls below the market clearing price?
Quantityi demand increas while quantity supply decrease.
What happens when the demand curve shifts to the right?
there are two things in regards to demand. one is demand the other is quantity demanded. if the demand curve stays the same and supply curve shifts right, the price of the item will decrease and quantity demanded will also decrease
What happens to demand when the supply curve shifts right?
there are two things in regards to demand. one is demand the other is quantity demanded. if the demand curve stays the same and supply curve shifts right, the price of the item will decrease and quantity demanded will also decrease
What happens when quantity demanded exceeds quantity supplied?
Graphically, the Y axis is price and the X axis is quantity. The demand curve slopes downward, while the supply curve slopes upward. When quantity demanded exceeds quantity supplied the market is out of equilibrium. As a result, the price of goods increases, thereby decreasing the quantity demanded. This is characterized as a move up along the demand curve and not a shift. Changes in endogenous variables, ie price and quantity, are just movements along the curve.
What happens when quantity supply exceeds quantity demand?
Graphically, the Y axis is price and the X axis is quantity. The demand curve slopes downward, while the supply curve slopes upward. When quantity demanded exceeds quantity supplied the market is out of equilibrium. As a result, the price of goods increases, thereby decreasing the quantity demanded. This is characterized as a move up along the demand curve and not a shift. Changes in endogenous variables, ie price and quantity, are just movements along the curve.
When there is a change in the quantity demanded what happens to the demand curve?
Decrease in quantity demanded usually results from an increase in price and vice versa. When the price of a product increases, the demand curve itself is not affected. However, the quantity demanded decreases to a higher point along the demand curve.
What happens when you decrease the velocity of a car?
as you decrease the velocity of a car, you decrease the kinetic energy.
What happens to digestive functions when chronic pancreatitis occurs?
The quantity of hormones and enzymes normally produced by the pancreas begins to seriously decrease. Decreases in the production of enzymes result in the inability to appropriately digest food.
Illustrate what happens supply and demand equilibrium if there is both a decrease in supply and no change in demand and what factors could generate this scenario?
A decrease in supply with no change in demand would result in higher prices, as well as a possibility of extra-legal sourcing of the product. An example of this occurred during Prohibition in the United States with alcoholic products.
