Question

What happens in the market with an upward sloping supply curve when there is a shift in the demand curve due to an external​ shock?

Answer 1

There will we a new equilibrium price will be achieved over some period of time, this will happens in the market with upward sloping supply curve when there is a shift in the demand curve due to external shock. When the market has a upward sloping supply curve and there is a shift in the demand curve due to external shock this only means that a new equilibrium price will be achieve over some period of time.