Market for a good is in equilibrium. There is simultaneous ''decrease'' both in demand and supply but there is no change in market price. Explain with help of a schedule how it is possible.

Market for a good is in equilibrium. There is simultaneous ''decrease'

1.	Market for a good is in equilibrium. There is simultaneous ''decrease'' both in demand and supply but there is no change in market price. Explain with help of a schedule how it is possible.
Answer» Solution :A simultaneous decrease in both demand and supply may not influence the market PRICE. This can be illustrated with the help of following SCHEDULE: As seen in the GIVEN table, INITIALLY, the equilibrium (market) price is RUPEE 6 per unit and the equilibrium demand and supply is rupee 60 units. When both demand and supply decrease by 10%, then both demand and supply fall from 60 units to 54 units. It means, at market price of rupee 6, both demand and supply are equal. So, a simultaneous decrease in both demand and supply may not change the market price.