ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Shift of the demand curve to the right indicates an increase in demand at the same price because a factor, such as consumer trend or taste, has risen for it. A shift to the left displays a decrease in demand at the same price because another factor, such as number of buyers, has slumped.

Detailed explanation-2: -Effectively, the equilibrium quantity remains the same however the equilibrium price rises. In this case, the right shift of the demand curve is proportionately more than the leftward shift of the supply curve. Hence, both equilibrium quantity and price rise.

Detailed explanation-3: -When both the demand curve and the supply curve shift towards the left, the equilibrium quantity decreases but the equilibrium price may increase decrease or remain the same depending on the magnitude of shifts in the two curves.

Detailed explanation-4: -If the cost of production is lower, the profits available at a given price will increase, and producers will produce more. With more produced at every price, the supply curve will shift to the right, meaning an increase in supply.

Detailed explanation-5: -When supply remains constant, but the demand surges, it tends to shift the demand curve rightwards. If the demand for a product steadily rises, it ultimately affects the equilibrium price. Therefore, this price rise also increases competition among buyers, which also hikes the price of a product.