Due to excessive rainfall price of umbrella soared up in state of west bengal. Use diagram and economic theory to analyse the statement
Dear student,
In the given situation the demand for umbrellas increases. With supply remaining the same this would lead to a rise in the price of the good.
You can view the diagrammatic presentation of the situation from our study material following the below mentioned path:
Class 12- Economics - Microeconomics - Market equilibrium - Market equilibrium under fixed number of firms- Topic: Increase in demand
In the given situation the demand for umbrellas increases. With supply remaining the same this would lead to a rise in the price of the good.
You can view the diagrammatic presentation of the situation from our study material following the below mentioned path:
Class 12- Economics - Microeconomics - Market equilibrium - Market equilibrium under fixed number of firms- Topic: Increase in demand