Market changes - Revision Flashcards
1
Q
what happens to equilibrium price when demand increases
A
it will increase because demand has shifted outwards
2
Q
what happens to equilibrium quantity when demand increase
A
it will increase also as a movement along supply curve
3
Q
what happens to equilibrium price when demand decreases
A
it will decrease because less people can afford
4
Q
what happens to equilibrium quantity when demand decreases
A
it will decrease as a movement along supply downwards
5
Q
what happens to equilibrium price when supply increases
A
price decrease because less scarce
6
Q
what happens to equilibrium quantity when supply increases
A
increase
7
Q
what happens to equilibrium price when supply decreases
A
increase because more scarce
8
Q
what happens to equilibrium quantity when supply decreases
A
decrease
