What happens to equilibrium during the rise and fall of a fad?

2 answers:

6 0

The rise and fall of fads will affect the equilibrium price and quantity for example if water was in short supply then the price will more than likely go up. Hope this helps!

Grace [21]2 years ago

5 0

The rise and fall of a passing fad can cause a failure of balance and supply and demand of a product.

The rise of a fad can create a high demand for the product, that is, a high demand for the merchandise; and can cause a low supply, that is, the industry can not produce enough to supply people's demand for the goods. In this way the balance is impaired

On the other hand, the fall of a fad, can create a high supply of the product by the industries, but as the fad passed, people do not look for this product anymore, that is, the demand is low to receive the offer. This also damages the balance.

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