Explain the effect on equilibrium price and equilibrium quantity in the following cases: (a) Demand curve shifts to the left, (b) Supply increases when the demand is perfectly elastic, (c) Both demand and supply increase in same ratio.

Explain the effect on equilibrium price and equilibrium quantity in th

1.	Explain the effect on equilibrium price and equilibrium quantity in the following cases: (a) Demand curve shifts to the left, (b) Supply increases when the demand is perfectly elastic, (c) Both demand and supply increase in same ratio.
Answer» <html><body><p></p>Solution :(a) Both equilibrium price and qunatity <a href="https://interviewquestions.tuteehub.com/tag/demanded-7675308" style="font-weight:bold;" target="_blank" title="Click to know more about DEMANDED">DEMANDED</a> falls.<br/>(<a href="https://interviewquestions.tuteehub.com/tag/b-387190" style="font-weight:bold;" target="_blank" title="Click to know more about B">B</a>) Equilibrium price remains the same whereas equilibrium <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> <a href="https://interviewquestions.tuteehub.com/tag/increases-1040626" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASES">INCREASES</a>.<br/>(c) Equilibrium quantity increases whereas the equilibrium price remains the same.</body></html>