- Identify current Qs and Qd at original price
- Identify surplus/shortage
- Identify downward/upward pressure on price respectively, and point out the different responses of producers (decrease/increase in Qs) and consumers (decrease/increase Qd) according to the laws of supply and demand respectively
- Adjustment period continues until a new equilibrium is reached, where Qs=Qd. Then conclude with increasing or decreasing equilibrium price & quantity
mar 31 2024 ∞
mar 31 2024 +
mar 31 2024 +