Whether the product market or the labor market, what happens to the equilibrium price and quantity for each of the four possibilities: increase in demand, decrease in demand, increase in supply, and decrease in supply.

The product market and labor market are there and we have to see the effects on equilibrium price and quantity.

The product market is a market or place where the demand and supply of finished goods happened. Here the different companies offer their varied products to the different consumers at a price that is fixed by the forces of demand and supply.

The labor market is a market or place where the demand and supply of labor have happened. Here the varied labors provide the supply and the employers created their demand.

The meeting point of the supply and demand curve is the deciding factor of the equilibrium price and quantity. There is an incline and decline of demand and supply on equilibrium price which is explained below:

increase in demand:when the demand of a product increases the demand curve will shift to the right and this rightward shift in the demand curve will shoot up the equilibrium price and quantity both.

Decrease in demand: when the demand of a product decreases, the demand curve will shift to the left and this leftward shift of the demand curve will have an effect of a decline in the equilibrium price and quantity both.

Increase in supply: when the supply of a product rises, the supply curve will shift to the right, and this rightward shift of the supply curve will have a reverse effect on the price and quantity of the product. Because of this situation, there is a rise in equilibrium quantity but a fall in the equilibrium price.

Decrease in supply: when the supply of a product decline, the supply curve will shift towards the left and this leftward shift causes an increase in equilibrium price and on the other hand causes a decrease in equilibrium quantity.