Home
Class 11
ECONOMICS
There is a simultaneous 'decrease' in de...

There is a simultaneous 'decrease' in demand and supply of a commodity. When will it result in:
(a) No change in equilibrium price, (b) A fall in equilibrium price Use Diagram.

Text Solution

Verified by Experts

(a) When the decrease in demand is equal to decrease in supply.
(b) When the decrease in supply is less than the decrease in demand.
Doubtnut Promotions Banner Mobile Dark
|

Topper's Solved these Questions

  • PRICE DETERMINATION AND SIMPLE APPLICATIONS

    SANDEEP GARG|Exercise Short Answer Type Questions|20 Videos

  • MAIN MARKET FORMS

    SANDEEP GARG|Exercise Very short|17 Videos

  • PRODUCER'S EQUILIBRIUM

    SANDEEP GARG|Exercise Unsolved Practicals|12 Videos

Similar Questions

Explore conceptually related problems

What would be an effect on equilibrium price and equilibrium quantity when demand and supply both shift leftward? Or There is simultaneously decrease in demand and supply of a commodity, when will it result in: (i) No change in equilibrium price (Case I) (ii) A fall in equilibrium price. (Case III). Or Market for a good is in equilibrium. There is simultaneous "decrease" in both demand and supply of the goods. Explain its effect on market price.

An increase in supply results in a fall both in equilibrium quantity and equilibrium price.

Knowledge Check

  • Equilibrium price falls and equilibrium quantity rises when:

    A
    Decrease in demand `lt` Decrease in supply
    B
    Increase in demand = Increase in supply
    C
    Decrease in demand `lt` Increase in supply
    D
    Decrease in demand = Increase in supply

  • In case of - an increase in demand will lead to rise in equilibrium quantity, but no change in equilibrium price.

    A
    Perfectly elastic supply
    B
    Perfectly inelastic suply
    C
    Highly elastic supply
    D
    Less elastic supply

    • Similar Questions

    Explore conceptually related problems

    Excess supply of a commodity exists when its market price is greater than its equilibrium price.

    Excess supply leads to fall in equilibrium price.

    What would be an effect on equilibrium price and quantity when demand and supply both shifts rightward? Or What would be an effect on equilibrium price and quantity when there is simultaneous increase in demand and supply? "If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease." Explain using diagrams. Or Market for a good is in equilibrium. There is simultaneous increase" both in demand and supply of the good. Explain its effect on market price.

    Market for a good is in equilibrium. There is simultaneous ''decrease'' both in demand and supply but there is no change in market price. Explain with help of a schedule how it is possible.

    If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease." Explain by using diagrams.

    Explain the effect of simultaneous increases in both demand and supply on equilibrium price and quantity. Show on diagram a situation when there is no change in equilibrium price.

    Home
    Profile