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Archy [21]
1 year ago
9

Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?

Business
1 answer:
Sunny_sXe [5.5K]1 year ago
5 0

Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price. 1. Consumers now place a higher value on goods, and producers must charge a higher price to offer the goods; as a result, prices will rise for all quantities.

If demand increases at the same time as supply increases, as is the case in the scenario depicted, the new equilibrium price will be greater than the initial equilibrium price.

We therefore know that an increase in supply decreases equilibrium price and increases quantity, while a rise in supply increases equilibrium price and decreases quantity (and vice versa) (and vice versa).

To learn more on equilibrium price

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1.2.35 Question Help Ralph Chase plans to sell a piece of property for ​$ 140000 140000. He wants the money to be paid off in tw
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a). The amount of the short-term loan=$128,181.82

b). The amount of the long-term loan=$156,666.67

Explanation:

The total annual interest to be paid can be expressed as;

I=PRT

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