What will happen to equilibrium prices if both demand and supply change in opposite directions in...

What will happen to equilibrium prices if both demand and supply change in opposite directions in a market simultaneously by the same proportions at all price/quantity combinations?
How are the vacancy rate and the occupancy rate in a market related?

Solutions

Expert Solution

If there is a change in the demand and supply in equal proportion, then equilibrium point will be staying similar because demand and supply are inversely related to each other so when there is a change in the demand and supply in the similar proportion and they both are inversely related to each and equilibrium point will be remaining similar Between the demand and supply. It will be not changing because of similar change into both factors.

So it can be said that equilibrium point will be remaining similar even if there is a same proportion of change in demand and supply of a company.

Occupancy rate and vacancy rate in a market is related because occupancy rate is calculated after ascertainment of overall vecancy rate into the system so these both are interrelated factors because when will be calculated based on the other factor.

Vacancy rate is the rate at which place which has been vacant where as the occupancy rate is the proportion of the total place which has been occupied so there will be a similarity because of inverse relationship between both as when there is a higher occupancy rate there would be a lower vacancy rate and vice versa

jeff jeffy answered 1 year ago

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