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draw the curves and provide answer to the following questions: The price equilibrium ___________ (increases/decreases/constant) and the quantity equilibrium _______________ (increases/decreases/constant) when the demand curve
draw the curves and provide answer to the following questions:
- The price equilibrium ___________ (increases/decreases/constant) and the quantity equilibrium _______________ (increases/decreases/constant) when the demand curve shifts to the write given tht the supply is constant.
- The price equilibrium ____________(increases/decreases/constant) and the quantity equilibrium _______________ (increases/decreases/constant) when the increase in demand exceeds to the increase in supply. That is, both the demand curve and the supply curve shift to the right, but the gap between the shifts in demand is bigger than the gap between the shifts in supply.
- The original demand equation and the new demand equation are Qdo = 120 - 10P and Qdn = 60 - 10P respectively. The original supply equation and the new supply equation are Qso = 20 + 5P and Qsn = 30 + 5P respectively. Compute the change in quantity equilibrium and the change in price equilibrium.
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