Donate SIGN UP

Demand/Supply question

Avatar Image
jp_2031 | 20:56 Mon 02nd Nov 2009 | How it Works
0 Answers
Im a little confused at this. If the government give a subside, for say... Printers... This reduces the price and increases demand, by making it move along the demand curve? Or does it move the full curve? I thought it would only move along the demand curve, resulting in excess demand/ shortage supply, but surely this is wrong because that would result in price increasing anyway to get back to the equilibrium?

would anything happen to the supply curve?

Thanks in advance
Jp
Gravatar

Answers

rss feed

Best Answer

Nobody has yet answered this question. Once some answers have been given, jp_2031 will be able to select one answer as the best. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
There are no answers available for this question.

rss feed

Do you know the answer?

Demand/Supply question

Answer Question >>