Increase in Supply results in a right ward shift in supply curve, leading to a new equilibrium point( the intersection point of demand and new supply curve.)
· With the increase in supply, supply curve shifts rightward.
· The new equilibrium point is E1
· It would result in fall in prices and increase in quanity demanded.
Increase in demand results in a right ward shift in demand curve, leading to a new equilibrium point( the intersection point of demand and new supply curve.)
· With the increase in demand, demand curve shifts rightward.
· The new equilibrium point is E1
· It would result in rise in prices and increase in quanity demanded.
Simultanous Increase in demand and supply results in a right ward shift in demand curve and supply curve, leading to a new equilibrium point( the intersection point of demand and new supply curve). The changes in both demand and supply is a real market situation, The supply and demand curve changes as a result of change in market conditions.
· With the simultaneous increase in demand and supply, demand and supply curves shift rightward.
· The new equilibrium point is E1
· Here, It would result in rise in price P1 and increase in quanity demanded Q1.
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