Assume your product is Wendy's hamburgers. First "draw" the demand and suppy curve and see how the equilibrium price and quantity is determeined.
Second, change something on the demand or supply side, i.e increase or decrease one of the determinants of demand ( or supply). Write a short description of what you changed and how it should affect the equilibrium price or quantity. Did teh equilibrim price and quantity do what you expected? Why or why not?© BrainMass Inc. brainmass.com October 10, 2019, 1:50 am ad1c9bdddf
The initial equilibrium is shown by the black demand and supply curves. The intersection point gives the equilibrium price P1 and the equilibrium quantity Q1.
Now suppose the population of the town where Wendy's is located increases. More people will mean more consumers and hence the demand for ...
Initial equilibrium is clearly illustrated in this solution.