I think, There are only two equilibrium points , when we shifts our demand curve to the right we will not get equilibrium point. when our supply curve shifts to right then we get second equilibrium point, there are only two equilibrium points in each three diagrams. By the way , very good sir , nice explanation. Thanks
Nice explanation .....but one I want to ask ,, why supply curve shift more far in decreasing cost industry.....in comparison to other cost industry...... whether I need to Remember this that in decreasing cost industry- price decrease- therefore we need to shift supply curve in such a way so that it make equilibrium at low price ... Or there is some other logic ....?.... Economics is not some kind of "ratta"....ya aise hi yaad rakhna pdta hai..😅😅
The way you said due to new entrants demand of input leads to increase in price so the same way please tell in case of decreasing cost why cost reduces.? And in case of decreasing why you shifted supply curve wider than other cases
decreasing cost industries are a little unusual. they are frequently in new industries where initial costs are high for otherwise low supply inputs, but as demand for the goods they are used to make increases the supply of the inputs is drastically increased which causes a drop in the price of the inputs, which in turn causes the LRATC of the finished good to drop (hence a decreasing cost industry). an example might be cell phone technology. when companies first started producing cell phones the cost of the inputs was very high. as demand for cell phones increased the price of cell phones decreased gradually over time (why cell phones are very cheap today compared to when they first came out ) even though the demand for cell phones has increased drastically over the last twenty years the cost to produce one has dropped significantly.
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Thank you sir...
The way of your explaination is...
Untold.....!
Excellent sir!! You made it very simple to understand! 👍👍
Thanks sir for your big helps ...
I think, There are only two equilibrium points , when we shifts our demand curve to the right we will not get equilibrium point. when our supply curve shifts to right then we get second equilibrium point, there are only two equilibrium points in each three diagrams.
By the way , very good sir , nice explanation. Thanks
Thanks sir...
Now because of u i will be able to pass my exams...
How can I'll see ur all video?? Ur explanation is awesome.
Nice explanation .....but one I want to ask ,, why supply curve shift more far in decreasing cost industry.....in comparison to other cost industry...... whether I need to Remember this that in decreasing cost industry- price decrease- therefore we need to shift supply curve in such a way so that it make equilibrium at low price ... Or there is some other logic ....?.... Economics is not some kind of "ratta"....ya aise hi yaad rakhna pdta hai..😅😅
Thnks a lot
👌👌👌
But there is another diagramme given in my book of Long run aggregate supply curve.....(with price level and real gdp )
Nce
The way you said due to new entrants demand of input leads to increase in price so the same way please tell in case of decreasing cost why cost reduces.?
And in case of decreasing why you shifted supply curve wider than other cases
decreasing cost industries are a little unusual. they are frequently in new industries where initial costs are high for otherwise low supply inputs, but as demand for the goods they are used to make increases the supply of the inputs is drastically increased which causes a drop in the price of the inputs, which in turn causes the LRATC of the finished good to drop (hence a decreasing cost industry).
an example might be cell phone technology. when companies first started producing cell phones the cost of the inputs was very high. as demand for cell phones increased the price of cell phones decreased gradually over time (why cell phones are very cheap today compared to when they first came out ) even though the demand for cell phones has increased drastically over the last twenty years the cost to produce one has dropped significantly.