Q) With the help of graphs, show how the following changes are going to affect the market equilibrium. Considering the shifting factors of Gul Ahmed Clothing demand;The consumer is promoted, now earning better salary than before;clothing brand announces the 70% off sale on their entire stock for unlimited time period;A news channel announces that Eid is expected to be on Thursday in coming week;With an increase in global connectivity, now consumers are more inclined towards western clothing.

a. Gul Ahmed clothing demand would be increasing due to an increase in level of consumer income.The…

Answered: ursday in coming week; With an increase…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q) With the help of graphs, show how the following changes are going to affect the market equilibrium. Considering the shifting factors of Gul Ahmed Clothing demand;

The consumer is promoted, now earning better salary than before;
clothing brand announces the 70% off sale on their entire stock for unlimited time period;
A news channel announces that Eid is expected to be on Thursday in coming week;
With an increase in global connectivity, now consumers are more inclined towards western clothing.

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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