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Market is in equilibrium. What is …

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Market is in equilibrium. What is the effect on equilibrium price and quantity if the proportionate increase in market demand is less than increase in market supply? Use diagram.

    • Posted by Ray Thakur 7 years, 1 month ago

    CBSE > Class 12 > Economics
    • 1 answers

    Anushka Agrawal 7 years ago

    Equilibrium quantity will increase. But since the increase in demand is less than inctease in supply, there will be a situation of excess supply and to clera the market again i.e to get the equilibrium again ,price will be decreased so that the supply will reduce and demand will increase till they both i.e supply and demand become equal

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