Assignment Example | Topics and Well Written Essays - 500 words - 148

Assignment ExampleThere 155 units ar supplied to the market at that price. Results are shown in the table in Q.2An increase in beg as a result of a decrease in prices without a corresponding change in summate leave behind push the demand curve upwards and thusly result to a shift of the demand curve to the serious, that is, from D to D2. An increase in prices will reduce the consumers purchasing power and hence shift the demand curve downwards to the left from D to D1 as shown by the arrows.An increase in prices will result to an increase in supply and this shifts the supply curve to the reform from S to S2. A decrease in prices decreases supply shifting the supply curve to the left from S to S1. The shift is shown by the arrows, demand remains constant. The equilibrium moves to the left incase of a decrease in supply and to the right in case of an increase in supply.An increase in both supply and demand will expand the market resulting in an increase in both the prices of the goods and also the quantity of goods supplied and demanded. The equilibrium shifts to the right (William 12).A decrease in both demand and supply will contract the market conduct to lower prices of goods and lower quantities of goods traded. Hence the equilibrium price and quantity shifts to the left (William