Answer to Question #134117 in Economics for zandile

Question

explain how a change in demand could affect the equilibrium price and quantity in the market

Answer 1

1. A change in demand will cause equilibrium price and output to change in thesame direction.

a. A decrease in demand will cause a reduction in the equilibrium price and quantity of a good.

b. An increase in demand will cause an increase in the equilibrium price and quantity of a good.