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"How would you need to shift the supply and demand curves in a market to result in a situation where equilibrium quantity increases while the equilibrium price change is indeterminate?"

User Kristy
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1 Answer

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16 votes

Answer:

the demand and supply curve shift outward / to the right

Step-by-step explanation:

Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.

Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :

1. a change in consumers' expectation

2. a change in the taste of consumers

3. a change in income

A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.

Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :

1. A change in the price of input

2. A change in the number of suppliers

3. Government regulations

If the demand curve for a good shifts outward as a result of an increase in demand. Equilibrium price and quantity would increase.

If the supply curve for a good shifts outward as a result of an increase in supply, equilibrium price decreases and quantity increases.

Taking these two effects together, there would be an increase in equilibrium quantity while the equilibrium price change is indeterminate

User Neno Ganchev
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