BUS400 Chapter Notes - Chapter 3: Economic Equilibrium
Document Summary
If demand and supply increase equally, the equilibrium price will remain the same but the equilibrium quantity will increase. If demand and supply decrease equally, the equilibrium price will remain the same but the equilibrium quantity will fall. the equilibrium price and quantity will rise. If the increase in demand is larger than the increase in supply, both. If the increase in supply is larger than the increase in demand, the. If an increase in demand is matched by an equal decrease in supply, equilibrium price will fall, but the equilibrium quantity will rise. the equilibrium price will rise, but the equilibrium quantity will remain the same. If an increase in supply is matched by an equal decrease in demand, the equilibrium price will fall, but the equilibrium quantity will remain the same. Here are some graphs from the text illustrating these points:
