p

/ '
which prices of commodities
after the lots of GIS

A
one
negotiate prices by signals & incentives
p - -

↓ p.IT
-

p,
i. 4-
- - - -

'
I D
I 1 Di
Q
,

Q
Q
,
←

As decreases
demand producers will ream a signal to
produce
less where D shift left CD Dil then there is
supply curve to a contraction

point A
in from to B demand ↓ , there will be
supply , where as
a

then decreases producers less

surplus ,
price then will relieve
profit .

As demand decreases consumers will be able to buy goods at a lower price

less where D shift left CD Dil then there is
supply curve to a contraction

point A
in from to B demand ↓ , there will be
supply , where as
a

surplus ,
then
price decreases then consumers will be able to

buy goods and services at a lower

price ,
where they can buy more

'

P s

2 , ←
s

P, -
- -

tr
A
p - -

y
-

1 I

1
D
1
'
1
,

Qi Q Q

AS there are less supply available

, supply will fall ls to Si ) where

there will increase LP Pit will be scarce , then

price to so

demand exceeds .
This will mean than the
supply will be

rationing , then srlu of supply will increase ,

due to
occurring of
shortage in
supply .
then there will be a contraction in demand .

As price of
mmhg has increased , they will need to much
pay more

than past as the labour has become more scarce which means
that firms will need to more due
pay or
give up to
-

rationing function , then relieve incentives as they 'll earn

more profit in higher prats

as
they got signals to

increase their prices .