Final answer:
To predict the effects on price, quantity demanded, and quantity supplied, we use the demand and supply framework. The equilibrium price and quantity are determined by the intersection of the demand and supply curves.
Step-by-step explanation:
In order to predict the effects on the price, quantity demanded, and quantity supplied, we can use the demand and supply framework.
When the price increases, the quantity demanded usually decreases, while the quantity supplied increases. On the other hand, when the price decreases, the quantity demanded usually increases, while the quantity supplied decreases.
To determine the equilibrium price and quantity, we can graph the demand and supply curves and find the intersection point. The equilibrium price is the price at which the quantity demanded and quantity supplied are equal, while the equilibrium quantity is the quantity at that price.