Change in the equilibrium price and quantity with an increase or decrease in demand or supply. Concept Introduction: Increase/Decrease in demand - Change in demand consequent upon a change in the factors other than price cause the demand to increase or decrease. Change in income, wealth or preferences of the consumers, for example, are factors that lead to a change in the demand among other factors. Prices remaining unchanged, these factors cause the demand curve to shift inward or outward. Increase/Decrease in Supply - Change in supply consequent upon a change in the factors other than price cause the supply to increase or decrease. Change in technology, cost of the factors of production, factor productivity etc, for example, are factors that lead to a change in the supply among other factors. Prices remaining unchanged, these factors cause the supply curve to shift inward or outward.

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Chapter 4, Problem 4.2SC

To determine

Change in the equilibrium price and quantity with an increase or decrease in demand or supply.

Concept Introduction:

Increase/Decrease in demand- Change in demand consequent upon a change in the factors other than price cause the demand to increase or decrease. Change in income, wealth or preferences of the consumers, for example, are factors that lead to a change in the demand among other factors. Prices remaining unchanged, these factors cause the demand curve to shift inward or outward.

Increase/Decrease in Supply- Change in supply consequent upon a change in the factors other than price cause the supply to increase or decrease. Change in technology, cost of the factors of production, factor productivity etc, for example, are factors that lead to a change in the supply among other factors. Prices remaining unchanged, these factors cause the supply curve to shift inward or outward.

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