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  • Market Equilibrium: Price D S

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    Herdi 89
    13 views7 pages
    The document discusses market equilibrium and how it relates to supply and demand. It contains four diagrams showing how equilibrium price and quantity change with increases or decreases in supply and demand. An increase in demand raises the equilibrium price and quantity, while a decrease in demand lowers them. An increase in supply lowers the equilibrium price but raises the quantity, while a decrease in supply raises the price but lowers the quantity. The diagrams also illustrate how price imbalances can lead to shortages or surpluses.

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    jawaban no 5

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    The document discusses market equilibrium and how it relates to supply and demand. It contains four diagrams showing how equilibrium price and quantity change with increases or decreases in supply and demand. An increase in demand raises the equilibrium price and quantity, while a decrease in demand lowers them. An increase in supply lowers the equilibrium price but raises the quantity, while a decrease in supply raises the price but lowers the quantity. The diagrams also illustrate how price imbalances can lead to shortages or surpluses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views7 pages

    Market Equilibrium: Price D S

    Uploaded by

    Herdi 89
    The document discusses market equilibrium and how it relates to supply and demand. It contains four diagrams showing how equilibrium price and quantity change with increases or decreases in supply and demand. An increase in demand raises the equilibrium price and quantity, while a decrease in demand lowers them. An increase in supply lowers the equilibrium price but raises the quantity, while a decrease in supply raises the price but lowers the quantity. The diagrams also illustrate how price imbalances can lead to shortages or surpluses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 7

    Market Equilibrium

    Price
    D S

    Quantity
    Q
    Market Equilibrium
    Price
    D0 D1 S0
    An increase in demand
    will cause the market
    P1
    equilibrium price and
    P0 quantity to increase.

    Quantity
    Q0 Q1
    Market Equilibrium
    Price
    D1 D0 S0
    A decrease in demand
    will cause the market
    P0
    equilibrium price and
    P1 quantity to decrease.

    Quantity
    Q1 Q0
    Prepared by Robert F.
    Brooker, Ph.D.
    Market Equilibrium
    Price An increase
    in supply
    D0 S0 S1 will cause
    the market
    equilibrium
    price to
    P0 decrease and
    P1 quantity to
    increase.

    Quantity
    Q0 Q1
    Market Equilibrium
    Price A decrease in
    supply will
    D0 S1 S0 cause the
    market
    equilibrium
    price to
    P1 increase and
    P0 quantity to
    decrease.

    Quantity
    Q1 Q0
    If price is too low…
    Price S

    7
    6

    Shortage D
    12 - 6 = 6
    6 12 Quantity
    If price is too high…
    Surplus
    Price 14 - 6 = 8
    S
    9
    8
    7

    6 8 14 Quantity

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