When will (a) simultaneous increases and (b) simultaneous decreases in both demand and supply not affect the equilibrium price? Explain with the help of diagrams.

Answer

(a) Increase in Demand= Increase in Supply; (b) Decrease in Demand= Decrease in Supply.

Explanation

(a) When the simultaneous increase in both demand and supply are equal.

(b) When the simulataneous decrease in both demand and supply are equal.