what is chain effect of shift in demand and supply? I actually mean why is it called the chain effect? what is the significance of using the word chain here
Chain effect refers to the situation when on effect leads to another effect. In other words, one effect is followed by another and a series of effects or a chain is formed. Any fluctuation in market demand and market supply lead to a series of alterations to determine new equilibrium. This is referred as chain effect of shift in demand and supply.