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The questions posted on the site are solely user generated, Doubtnut has no ownership or control over the nature and content of those questions. Doubtnut is not responsible for any discrepancies concerning the duplicity of content over those questions. Uh-Oh! That’s all you get for now. We would love to personalise your learning journey. Sign Up to explore more. Sign Up or Login Skip for now Uh-Oh! That’s all you get for now. We would love to personalise your learning journey. Sign Up to explore more. Sign Up or Login Skip for now Solution When supply is perfectly elastic and demand increases, there will be no change in the price but the quantity demanded increases. In the diagram, when demand increases from DD to D1D1, the price remains constant at OP, but the quantity increases from OQ to OQ1.What happens equilibrium price?A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
How is the equilibrium price and equilibrium quantity of a commodity affected when increase is demand is more than increase in supply explain with the help of a diagram?At a higher price quantity demanded will fall and quantity supplied will increase resulting in upward movement along new demand curve and given supply curve. This reduces the gap between quantity demanded and quantity supplied.
What happens to the equilibrium price of a commodity when its demand rises?Equilibrium price increases.
"If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease."
How is the equilibrium price and equilibrium quantity of a normal commodity affected by an increase?Increase in price leads to rise in supply and fall in demand and these changes continue till supply and demand become equal at a new equilibrium price so if there is an increase in demand only, equilibrium prices rises.
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What is equilibrium price what happens to equilibrium price of a commodity when its demand increases show with the help of diagram?
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