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Explain about the increases or decreases or shifts in demand terminology.
Market into equilibrium P1Q1, here demand D1 equals supply S1
• When price reduce fromP1 to P3 there would be an extension of the demand curve like the quantity demanded would increase by Q1to Q3 due to the fall within price
• When there was a price increase by P3 to P1 there would be a contraction of the demand curve, in that case the quantity demanded would fall by Q3 to Q1 due to the rise in price
• An increase or shift to the right of the demand curve by D1 to D2 as a rise into demand at similar market price P1 would finally create a higher price and quantity now demanded, settling at last P2Q2 once new equilibriums determined, because of a shortage.
• A reduce or shift to the left of the demand curve by D1 to D3 (a reduce in demand at similar market price P1) would at last create a lower price and quantity currently demanded, settling at last P4Q4 when a new equilibriums found, because of a surplus.
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