Illustrate the changes in Demand, Supply and Equilibrium
Illustrate the changes in Demand, Supply and Equilibrium?
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Changing demand by way of supply held constant:
1. Increase in demand will have effect of increasing equilibrium price and quantity.
2. Decrease in demand will have effect of decreasing equilibrium price and quantity
Changing supply by way of demand held constant:
1. Increase in supply will have effect of decreasing equilibrium price and increasing quantity.
2. Decrease in supply will have effect of increasing equilibrium price and decreasing quantity.
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