1.3.4. The change in the equilibrium on the market
supply and demand decide the quantity of goods and the market equilibrium price. So when supply and demand changes, prices and output in the market equilibrium changes. We have 3 cases:
Case 1: Supply constant changing demand.
Demand (provision unchanged): When demand for a product increases, the supply constant, the demand curve shifts to the right, the supply curve unchanged . The market will balance at a new equilibrium point at which the new equilibrium price will be higher than the equilibrium price and quantity equilibrium old new balance will be greater than the former. This shows that the demand for a product increases, provide constant item, both buying and selling prices in the market volume will increase.
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