Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity

Question

Rina8888 [55]

3 years ago

13

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity

has increased. These changes are a result of a ________ shift of the ________ curve for bottled water.

Business

2 answers:

asambeis [7] · Answer 1 · 2022-07-17T02:24:52+03:00

Answer:

Rightward; demand

Explanation:

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a ___Rightward___ shift of the ___demand__ curve for bottled water.

When demand and supply are at balance, it means that equilibrium has been attained.

A shift in the demand means consumers are willing to buy more irrespective of the price.

Equilibrium price and equilibrium quantity is said to increase when there is a rightward shift in demand curve.

In this case, since, the equilibrium price of bottle water increased from $1 to $2 and equilibrium quantity of bottle water increased, therefore it can be said that there's a rightward shift in the demand curve of bottle water. The price change was as a result of change in demand

Leona [35] · Answer 2 · 2022-07-17T04:12:09+03:00

Answer:

Rightward, demand

Explanation:

Equilibrium is the state in which market supply and demand balance each other, and as a result, prices become stable.

If demand and supply change in opposite directions, then the change in the equilibrium price can be determined, but the change in the equilibrium. output cannot. A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined.

How price change affects equilibrium

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.

From the question:

Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a rightward shift of the demand curve for bottled water.