ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. 1. For any quantity, consumers now place a higher value on the good, and producers must have a higher price in order to supply the good; therefore, price will increase.

Detailed explanation-2: -As per law of demand, when the price of a commodity rises the quantity demanded of the commodity decreases, i.e., implying an inverse relationship between demand and price. Thus, in case of oranges, a rise in price will lead to a fall in quantity demanded for oranges. Was this answer helpful?

Detailed explanation-3: -Answer and Explanation: The equilibrium price will reduce and the equilibrium quantity will increase. If exceptionally good weather provides a much bigger than expected orange harvest, the supply for oranges will increase and the supply curve for oranges will shift to the right.

Detailed explanation-4: -A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.