Case 1: Decrease in Demand = Increase in Supply:

When decrease in demand is proportionately equal to increase in

supply, then leftward shift in demand curve from DD to D1D1 is
proportionately equal to rightward shift in supply curve from SS to
S1S1 (Fig. 11.16). The new equilibrium is determined at E1 equilibrium
quantity remains the same at OQ, but equilibrium price falls from OP
to OP1.

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An increase in supply is illustrated by a shift of the supply curve to the right.

An increase in supply can be caused by:

 An increase in the number of producers.

 A decrease in the costs of production (such as lower prices for oil, labor, or other factors of
production).
 weather (e.g., ideal conditions might increase agricultural production)
 Technology (Technological innovations typically increase supply.)
 Expectations (e.g., producers might increase current production if they anticipate less favorable
market conditions in the future.)

http://econperspectives.blogspot.com/2009/05/us-public-debt-since-1940.html
A decrease in demand is illustrated by a shift of the demand curve to the left.

A decrease in demand can be caused by:

 A decrease in the number of consumers.

 An decrease in income (for normal products) or an increase in income (for inferior products, such
as Ramen noodles).
 A decrease in the price of a substitute product.
 An increase in the price of a complementary product.
 a change in tastes and preferences (e.g., if the product has become less popular or fashionable)
 expectations (e.g., consumers might decrease current demand if they anticipate more favorable
market conditions, such as lower prices, in the future.)

http://econperspectives.blogspot.com/2009/05/us-public-debt-has-increased.html
 Lessons Learned during this exercise and course
Name: SAHIL TAWDE
Roll no: 18-F-332
1. Learned the various economic concepts through real life example with
the help of diagram.
2. Learned the 16 case of demand & supply that shows the different
relationship between demand & supply at various points.
3. Learned the fiscal and monitory policy, and impact of the policy’s on
the economic development of the country.
4. Learned the various markets such as primary & secondary market,
The rules & regulations, government policy’s related to primary &
secondary market.
5. Understood the different dynamics play out in the different markets at
different time which may not have been possibly predicted.
6. Through the course of this exercise I have the learned the functions of
demand & supply when this is same decrease in demand & at the same
time same increase in supply.
7. As per the case when the demand decrease of particular product, the
price of that particular product & supply increase in the market.
8. At every stage the equibriliam point changes as per change in the
Demand & supply function.
9. Learned changing behavior of buyers & sellers with effect to
increase or decrease in demand & supply for a particular product.
10. Learnt the phases of business cycle and price movement, which
shows the depression phase when there is high level of unemployment
due to lack investments in the government sectors.