Answer to Question #121627 in Microeconomics for sundus

Question

Analyze the situation in Karachi and Lahore as reported here using demand and supply framework (with the help of graphs).
Specific requirements: Draw demand and supply curves for the market of fruits and vegetables in Karachi and Lahore (Don’t need to sketch graph for each fruit or each vegetable, just single curve for fruits and single curve for vegetables is sufficient).

Answer 1

Both in Lahore and Karachi the demand of fruits and vegetables increased making both the equilibrium price and quantity to rise. this happened due to many people were willing to buy the two commodities leading to an increase in demand. more consumers buying the products means the supply will also be high and the equilibrium quantity will go up t he same time.