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Demand and supply influences equilibrium price

Changes in both demand and supply of a commodity might or might not influence its equilibrium price. Describe.

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Answer: If demand and supply of a commodity change uniformly, and in similar direction there will be no effect on its price. On other hand, an uneven change in demand and supply will influence equilibrium price. Whenever demand rises more than supply, then equilibrium price will increase. On other hand, when supply rises more than demand, equilibrium price will down or fall.

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