Increase in demand and increase in supply curves.
An increase in demand will cause the equilibrium price to rise resulting to an increase in quantity supplied.
An increase in supply will result to the equilibrium price to lower increasing the quantity of good demanded.
Three factors that cause an increase in demand are;
a)the number of buyers in the market
b)changes in price of related goods
c)tastes and preferences of the consumers.
Comments
Leave a comment