Effect on the Equilibrium Price

In the given scenario, the increase in the price of LPG has led to an increase in the demand for electrical appliances. However, in the short run, the supply of these appliances remains constant. This change in demand and supply will have an effect on the equilibrium price of electrical appliances.

Shift in Demand

The increase in the price of LPG, which is a substitute for electrical appliances, has led to a change in consumer preferences. Consumers are now more inclined towards using electrical appliances instead of LPG-based appliances. This change in consumer behavior has resulted in an increase in the demand for electrical appliances.

Constant Supply

In the short run, the supply of electrical appliances remains constant. This means that the quantity of appliances supplied by manufacturers does not change in response to the increase in demand.

Effect on Equilibrium Price

Given the increase in demand and constant supply, the equilibrium price of electrical appliances will increase. The increase in demand will cause a shortage of electrical appliances in the market, as the quantity demanded exceeds the quantity supplied. In response to this shortage, consumers will be willing to pay a higher price for the limited supply of appliances, leading to an increase in the equilibrium price.

Values Highlighted by Demanders

The demanders of electrical appliances in this scenario are highlighting several values:

1. Cost-effectiveness: They are seeking cost-effective alternatives to LPG-based appliances, as the increase in the price of LPG has made them more expensive to use.

2. Convenience: They value the convenience and ease of use provided by electrical appliances, which has led to an increase in demand.

3. Energy efficiency: By choosing electrical appliances over LPG-based appliances, demanders are highlighting their preference for energy-efficient options.

4. Environmental consciousness: The shift towards electrical appliances can be seen as a reflection of demanders' concern for the environment, as electrical appliances have a lower carbon footprint compared to LPG-based appliances.

Overall, the increase in demand for electrical appliances due to the increase in the price of LPG reflects the changing preferences and values of consumers, emphasizing the importance of cost-effectiveness, convenience, energy efficiency, and environmental consciousness.