Analyzing number of event that influences market
How can we analyze the number of event that influences the market?
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To analyze how many event influences the market, we simply use the supply-and-demand diagram to observe how the event influences equilibrium price and quantity. To do this we pursue three steps. At First, we decide whether the event shifts the supply curve or the demand curve or both. Secondly, we decide in which direction the curve shifts. Thirdly, we compare the latest equilibrium with preliminary equilibrium.
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Definition of shortage: It is a condition in which quantity demanded is more than the quantity supplied. The sellers will respond to the shortage by increasing the price of the good till the market reaches the equi
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