How the following changes will affect demand and supply strong argument: 1 Reduction in subsidy by government
2 Increase in price of wood
3 Need of cupboards increased in universities
4 Reduction in tax for both buyers and seller of cupboard

Please see below for answer

Explanation:

1 Reduction in subsidy by government

The supply will be negatively affected as the production cost will get higher and it will get more difficult to meet the demand of the product.

2 Increase in price of wood

This will again have an impact on the supply as the production cost increases due to more expensive raw materials.

3 Need of cupboards increased in universities

The demand has increased in this case and the supply will have to be increased too if the demand is to be met.

4 Reduction in tax for both buyers and seller of cupboard

This will result in an increase in both supply and demand as more people might be able to afford the cupboards now as compared to before.

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