Answer to Question #319164 in Microeconomics for Assy

Question

The population in country C decreases due to lower birth rate . At the same time there is an increase in the cost of fertiliser for vegetables will be affected by these changes.clearly indicate how equilibrium price and equilibrium quantity will be affected by there change

Answer 1

Answer.

Equilibrium price and quantity will be affected because the increase in supply will render other things unchanged thereby causing price of equilibrium to fall. Equilibrium quantity on the other hand will increase.The decrease in the supply will cause the equilibrium price to rise.