Question

Explain what causes the demand and supply curve to slope downwards or upwards. How is equilibrium price and equilibrium quantity affected?

Answer 1

Answer: When the demand curve shifts upward it means there is an increase in demand but supply remains same, and quantity increases.

Explanation:

When the demand curve shifts upward it means there is an increase in demand but supply remains same, and quantity increases.

When the supply curve shifts downward it means the equilibrium price has fallen thereby leading to quantity increase.

An equilibrium price shows the intersection between the supply and demand curve.