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What causes an indeterminate change in equilibrium price?When supply and demand both shift, either price or quantity will be indeterminate. When supply and demand move in the same direction, price is indeterminate. That is because an increase in supply decrease price while an increase in demand will increase price.
What is an indeterminate change in economics?This term is commonly used to indicate that the change in either price or quantity is unknown when the market experiences simultaneous shifts in both the demand and supply curves. For example, an increase in both demand and supply definitely cause an increase in the quantity exchanged.
What happens to equilibrium price as a result of the change?Changes in the determinants of supply and/or demand result in a new equilibrium price and quantity. When there is a change in supply or demand, the old price will no longer be an equilibrium. Instead, there will be a shortage or surplus, and price will subsequently adjust until there is a new equilibrium.
Which of the following would result in an increase in equilibrium price and an ambiguous?Which of the following would result in an increase in equilibrium price and an ambiguous change in equilibrium quantity? a decrease in supply and an increase in demand.
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