Answer to Question #176414 in Microeconomics for Ayesha Aslam

Question

Explain show the effects on equilibrium price and quantity of AC in winter season

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Answer 1

Since the process of installing air conditioners is difficult in winter, this is a factor influencing the supply of air conditioners in winter in those companies that offer full service when buying an air conditioner.

With regard to demand, psychologically a person is inclined to buy a product when the need for it is felt the most. In winter, the need for air conditioning is zero, that is, the demand is potentially zero. There are very rational buyers who, hoping for discounts, will be ready to buy an air conditioner in winter, but in winter their offer is noticeably small, which makes sure that the air conditioner will not be bought at a discount in winter.