Imagine the curves. A decrease in demand would lower the equilibrium price by moving the demand curve to the left, dragging the intersection point down.
Posoftifly Yes im afraid
Increase in supply in the face of steady demand will result in lower price.
If the price rises, the quantity demanded declines. .
High Demand Lowers QuantityLow Demand increases price and quantity
Imagine the curves. A decrease in demand would lower the equilibrium price by moving the demand curve to the left, dragging the intersection point down.
Posoftifly Yes im afraid
Increase in supply in the face of steady demand will result in lower price.
If the price rises, the quantity demanded declines. .
High Demand Lowers QuantityLow Demand increases price and quantity
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Supply and demand intersect at an equilibrium point which determines the optimal quantity of whatever good and its price level. When the demand goes up, the price level increases and the quantity of goods increases as well. When the supply goes up, the price level goes down and the quantity of the good increases. It is easier to visualize this relationship by drawing the graph with a downward sloping demand curve intersecting an upward sloping supply curve. (When drawn, it should resemble the letter "X")
A verticle demand curve, where a change in price does not effect quantity.
If the cost to make a thing increases the price of the thing, then there might be less demand. If there is less demand, then there will be a buildup of inventory. Over time, fewer suppliers will make the good and the supply will decrease from over supply to a lower equilibrium point.
taxes indirectly decrease Y, it does this by decreasing consumption
They both will increase (or decrease).
inelastic demand