0
A demand and supply curve is used in economic to show that in a competitive market, the price of a product will vary depending on the need of the consumers.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What happens if demand curve interacts with the supply curve?
Then demand and supply are equal.
What is needed to dertermine the equilibrium of a good or service?
by finding where the supply curve and the demand curve intersect
When does supply curve look like a demand curve?
When supply and demand are perfectly elastic/inelastic
Supply and demand graph curve of hybrid cars?
supply and demand curve for hybrid vehicles
What is needed to determine equilibrium price of a good or a service?
a supply curve and a demand curveA supply curve and a demand curve.
What happens if demand curve interacts with the supply curve?
Then demand and supply are equal.
What is needed to dertermine the equilibrium of a good or service?
by finding where the supply curve and the demand curve intersect
When does supply curve look like a demand curve?
When supply and demand are perfectly elastic/inelastic
Supply and demand graph curve of hybrid cars?
supply and demand curve for hybrid vehicles
What is needed to determine equilibrium price of a good or a service?
a supply curve and a demand curveA supply curve and a demand curve.
What is needed to determine the equilibrium price of a good or services?
a supply curve and a demand curveA supply curve and a demand curve.
Is demand needed in equilibrium?
Yes. Equilibrium is created at the intersection of the Demand curve and Supply Curve. Equilibrium can be shifted if the Demand curve increases or decreases, and the same happens when the Supply curve increases or decreases. Without demand, you would just have a Supply curve.
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
Will a technological advance shift the supply or demand curve?
it will shift the supply curve to the right
Why does the supply curve increase or decrease?
The supply and demand curve follows four basic laws :If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.
Why is it difficult to judge elasticity of demand or supply if you are merely observing the appearance of a demand or supply curve on a graph?
Because it is basically curved shape, therefore, there are points/areas on the curve where the demand or supply will be elastic and on some other parts be inelastic. At the top of the curve, demand/supply tends to be inelastic and at the bottom of the curve, it tends to be elastic. Obviously, the more you go up the more we reach the perfectly inelastic demand/supply and the further you go down the curve, the more you reach the perfectly elastic demand/supply
Fiscal and monetary policies are used to shift the aggregate supply curve or the aggregate demand curve?
Aggregate demand curve.
