Explain effest of GST on equilibrium price and quantity. Explain its chain effects
Dear Student,
Goods and service tax shifts the supply curve to shift.That leads to fall in the equilibrium quantity and rise in the price . Depending on the elasticity of goods , total expenditure can either rise or fall.
Due to shift in supply of the commodity , there is more supply than demand , which causes increase in the equilibrium price and fall in the equilibrium quantity
.
Hope this information will clear your doubts .
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
Goods and service tax shifts the supply curve to shift.That leads to fall in the equilibrium quantity and rise in the price . Depending on the elasticity of goods , total expenditure can either rise or fall.
Due to shift in supply of the commodity , there is more supply than demand , which causes increase in the equilibrium price and fall in the equilibrium quantity
.Hope this information will clear your doubts .
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards