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What happens to equilibrium price of a commodity if there is ‘decrease’ in its demand and ‘increase’ in its supply ?
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Equlibrium price will fall.
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What happens to equilibrium price of a commodity if there is an increase in its demand and decrease in supply?
Equilibrium price increases.
"If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease."
What happens to the equilibrium price when supply decreases?
A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
What is equilibrium price what happens to equilibrium price of a commodity when its demand increases show with the help of diagram?
An increase in demand of a commodity results in a rightward shift of demand curve which lead to increase in price. It can be explain by diagram as follow-In the diagram demand and supply of good are equal at point E. So E is equilibrium point. At this point OP is equilibrium price and OQ is equilibrium quantity.
What can be the effects on the equilibrium price of a commodity when decrease in demand is less than increase in supply use diagram?
3) When decrease in demand is less than decrease in supply the equilibrium price will rise and equilibrium quantity will increase.