A basic demand curve. For more information, see Basic Supply and Demand
A basic supply curve. For more information, see Basic Supply and Demand
A basic equilibrium point. For more information, see Basic Supply and Demand
A demand curve shifted either right or left in response to a change in the market. Causes of a change in demand include: a change in consumers’ tastes, a change in the number of buyers, a change in incomes, changes in complements and substitutes of a product or service, and a change in expectations.
The point at which supply intersects the new demand curve. When demand increases, equilibrium price and quantity (P2 and Q2) increase, and vice versa.