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Mention the various cases in which equilibrium price remains same. |
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Answer» Solution :The EQUILIBRIUM price remains same when: (i) Increase in demand = Increase in SUPPLY. (ii) Decrease in demand= Decrease in supply. (iii) Demand INCREASES and supply is perfectly elastic. (IV) Demand decreases and supply is perfectly elastic. (v) Supply increases and demand is perfectly elastic. (vi) Supply decreases and demand is perfectly elastic. |
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