jasperaton142020
Answered

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Instructions: Plot the graph that describes each number below from 1 to 10. Determine and explain what will happen to equilibrium price and quantity supplied in each of the following cases.
1. Demand decreases and supply remain constant
2. Supply increases and demand remain constant
3. Demand increase and supply remain constant
4. Demand rises by the same amount that supply falls
5. Supply decreases and demand remain constant
6. Demand rises less than supply rises
7. Demand falls by the same amount that supply rises
8. Demand falls less than the supply rises
9. Demand rises more than the supply rises 10. Demand falls more than the supply rises​

Sagot :

tadashiisozaki

Answer:

1. a surplus occurs, leading to a lower equilibrium price.

2. prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.

3. a shortage occurs, leading to a higher equilibrium price.

4. the shifts in both supply and demand curves are proportionately equal.

5. a surplus occurs, leading to a lower equilibrium price.

6. the right shift of the demand curve is less than the right shift of supply curve.

7. The increase in demand < increase in supply.

8. the right shift of the demand curve is less than the right shift of supply curve.

9. When the decrease in demand is greater than the increase in supply, the relative shift of demand curve is proportionately more than the supply curve.

10. the relative shift of demand curve is proportionately more than the supply curve.

Explanation:

1. If demand decreases and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher equilibrium price.

2. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.

3. If demand increases and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.

4.When the increase in demand is equal to the decrease in supply, the shifts in both supply and demand curves are proportionately equal. Effectively, the equilibrium quantity remains the same however the equilibrium price rises.

5. If demand decreases and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher equilibrium price.

6. When the increase is demand is less than the increase in supply, the right shift of the demand curve is less than the right shift of supply curve. In this case, the equilibrium price falls whereas the equilibrium quantity rises.

7. When the increase is demand is less than the increase in supply, the right shift of the demand curve is less than the right shift of supply curve. In this case, the equilibrium price falls whereas the equilibrium quantity rises.

8. Effectively, both equilibrium price and quantity tend to increase. When the increase is demand is less than the increase in supply, the right shift of the demand curve is less than the right shift of supply curve. In this case, the equilibrium price falls whereas the equilibrium quantity rises.

9. As a result, the equilibrium quantity remains the same but the equilibrium price falls. When the decrease in demand is greater than the increase in supply, the relative shift of demand curve is proportionately more than the supply curve. Effectively, both the equilibrium quantity and price fall.

10. As a result, the equilibrium quantity remains the same but the equilibrium price falls. When the decrease in demand is greater than the increase in supply, the relative shift of demand curve is proportionately more than the supply curve. Effectively, both the equilibrium quantity and price fall.

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