MARKET EQUILIBRIUM

Market Equilibrium

Market Equilibrium

Question # 1

Event

Market

Shifting of the curve

Decrease or increase in the Equilibrium price

Decrease or increase in the Equilibrium quantity

Economic growth is expected to improve in the next two quarters.

Aluminum

The supply curve will shift and the equilibrium price will also shift.

The equilibrium price will rise as due to the increase in the economic growth, the price in the Aluminum market will increase.

The equilibrium quantity will remain same as the demand of aluminum will remain same, but the supply of aluminum will increase due to the economic growth.

Plastics production capacity has increased.

Plastics

The equilibrium price will shift due ...