Impact On The Market Price Of Mangoes Essay

952 Words Oct 23rd, 2016 4 Pages
Impact on the market price of mangoes

 Increase in Supply of mangoes result in a right ward shift in supply curve, leading to a new equilibrium point (the intersection point of demand and new supply curve.)

 With the increase in supply of mango, supply curve shifts rightward.
 The new equilibrium point is E1
 It would result in fall in prices and increase in quantity demanded.

 Increase in demand results in a right ward shift in demand curve, leading to a new equilibrium point ( the intersection point of demand and new supply curve.)

 With the increase in demand of mango, demand curve shifts rightward.
 The new equilibrium point is E1
 It would result in rise in prices of mango and increase in quantity demanded of mango

 Simultaneous Increase in demand and supply results in a right ward shift in demand curve and supply curve, leading to a new equilibrium point (the intersection point of demand and new supply curve). The changes in both demand and supply are a real market situation, the supply and demand curve changes as a result of change in market conditions.

 With the simultaneous increase in demand and supply of mango, demand and supply curves shift rightward.
 The new equilibrium point is E1
 Here, it would result in rise in price P1 and increase in quantity demanded Q1.

Briefly comment on the following confused thinking of a fellow student who says: "Sure, the theory predicts that the market price…

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