3 ms·
Supply curve shifts left, demand curve shifts left -> price is the same.
by mamonster 3y ago
Supply curve shifts left, demand curve shifts left -> price is the same.
- konschubert 3y agoThat’s not how demand curves work. If you hold the price fixed or your decrease it, demand will increase, not decrease. If you reduce supply, price finds a new equilibrium at lower demand, but that price is always HIGER than before. The fact that prices are equal or lower prices they this cannot be it.
- mamonster 3y agoThat is exactly how they work if both demand and supply shift. Example: P_d=100-Q P_s=Q Solve P_d = P_s to get Q=50, P=50 Take a left shift like 80 - Q in demand, and take a left shift in supply like P=1.66Q. Solving now you get Q=30, P=50