객관식
If markets are in equilibrium, which of the following conditions will exist?
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3. The Market Forces of Supply and Demand
Market Equilibrium
객관식
Given linear demand curves, if both demand and supply increase by identical amounts, what happens to the equilibrium price?
A
The equilibrium price decreases.
B
The equilibrium price becomes indeterminate.
C
The equilibrium price increases.
D
The equilibrium price remains unchanged.
검증된 단계별 안내1
Recall that the equilibrium price is determined by the intersection of the demand and supply curves, where quantity demanded equals quantity supplied.
Represent the demand curve as $Q_d = a - bP$ and the supply curve as $Q_s = c + dP$, where \(a\), \(b\), \(c\), and \(d\) are positive constants, and \(P\) is the price.
An increase in demand by an identical amount shifts the demand curve to $Q_d' = (a + k) - bP$, where \(k\) is the increase in demand.
An increase in supply by the same amount shifts the supply curve to $Q_s' = (c + k) + dP$, where \(k\) is the increase in supply.
Set the new demand equal to the new supply to find the new equilibrium price: $(a + k) - bP = (c + k) + dP$. Simplify this equation to see how \(k\) cancels out, showing that the equilibrium price remains unchanged.
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