Effects Of Shifts In Demand And Supply Curves On Equilibrium Price And Quantity
Economics notes
Effects Of Shifts In Demand And Supply Curves On Equilibrium Price And Quantity
➡️ Shifts in demand and supply curves can cause changes in the equilibrium price and quantity of a good or service.
➡️ An increase in demand will cause the equilibrium price to rise and the equilibrium quantity to increase.
➡️ A decrease in demand will cause the equilibrium price to fall and the equilibrium quantity to decrease.
➡️ An increase in supply will cause the equilibrium price to fall and the equilibrium quantity to increase.
➡️ A decrease in supply will cause the equilibrium price to rise and the equilibrium quantity to decrease.
How does a shift in the demand curve affect the equilibrium price and quantity?
A shift in the demand curve will cause the equilibrium price and quantity to change. If the demand curve shifts to the right, the equilibrium price will increase and the equilibrium quantity will also increase. Conversely, if the demand curve shifts to the left, the equilibrium price will decrease and the equilibrium quantity will also decrease.
How does a shift in the supply curve affect the equilibrium price and quantity?
A shift in the supply curve will also cause the equilibrium price and quantity to change. If the supply curve shifts to the right, the equilibrium price will decrease and the equilibrium quantity will also increase. Conversely, if the supply curve shifts to the left, the equilibrium price will increase and the equilibrium quantity will also decrease.
What is the relationship between shifts in the demand and supply curves and the equilibrium price and quantity?
The relationship between shifts in the demand and supply curves and the equilibrium price and quantity is that when the demand curve shifts to the right, the equilibrium price will increase and the equilibrium quantity will also increase. Conversely, when the supply curve shifts to the right, the equilibrium price will decrease and the equilibrium quantity will also increase.