Answer to Question #117258 in Microeconomics for Sidra

Question #117258
Terrorists destroy a major oil pipeline in Iraq (market for oil) What will be the effect on demand and supply equilibrium
1
Expert's answer
2020-05-20T09:51:07-0400

A decrease in supply will cause an increase in the equilibrium price and a decrease in the equilibrium quantity of a good. The decrease in supply creates an excess demand at the initial price and excess demand causes the price to rise and quantity demanded to decrease.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS