--%>

Equilibrium quantity and price

Elucidate the consequence of an increase in demand of a commodity on its equilibrium quantity and price?

Answer: Increase in demand causes a rightward shift in the demand curve keeping similar supply curve. As an outcome the equilibrium price and quantity both will raise.

   Related Questions in Microeconomics

  • Q : Instance Diminishing Marginal Utility

    Assume that you were permitted to eat as many ‘free’ jelly beans as you want at present. Subsequent to a few, you start to eat more slowly and to select some flavors over others. You might ultimately stop eating a ‘free’ and enjoyable good sinc

  • Q : Problem relating to Exploitation I have

    I have a problem in economics on Problem concerning Exploitation. Please help me in the given question. Whenever resource suppliers are salaried less than the values of their marginal products [or VMPs], then they are stated to be: (p) Monopsonistic. (q) Monopolistic.

  • Q : Problem based on production

    Refer to the given production possibilities curve and give  answer of following question . At the onset of the Second World War the Soviet Union was already at full employment. Its economic adjustment from peacetime to wartime can best be described by the movemen

  • Q : Signaling definition Can someone please

    Can someone please help me in finding out the accurate answer from the following question. Job applicants employ polished resumes explaining education, skills and work experience, accompanied by the supportive letters of recommendation letters as tools in the procedur

  • Q : Determine prices by maximize total

    LoCalLoCarbo that is Favorite Corporation of fad dieters, which can maximize its total revenue when this produces: (1) output q2 and charges a price equal to P1. (2) output q3 and charges a price of more than P2 althou

  • Q : Perspective of Sociologists and

    Far more than economists and sociologists tend to emphasize human needs for power, status, and class. Research which supports the perspective of sociologists comprises findings that: (1) people whose incomes are the average of per capita world income

  • Q : Analytic Time-The Long Run Can someone

    Can someone please help me in finding out the accurate answer from the following question. Alfred Marshall classification of analytical time specified that in long run it is: (i) Not possible to differ technology and at least one resource is fixed and hence at least o

  • Q : Perfect mobility and perfect information

    The model of perfect competition assumes perfect mobility and perfect information. Transaction costs are not present; therefore all buyers and sellers base decisions on the best information obtainable to anyone else, as well as transportation (mobilit

  • Q : NOT price discriminate by monopoly Into

    Into equilibrium, a monopoly which does NOT price discriminate will tend to produce: (w) the socially optimal rate of output. (x) a level of output where price exceeds marginal social cost. (y) lower output at lower prices than a competitive market. (

  • Q : Total revenue and price variation in

    While total revenue decreases because of an increase within price the firm is operating into the_________ portion of consumers' demand curve. (1) relatively elastic. (2) relatively inelastic. (3) unitary elastic. (4) perfectly inelast