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 supply curve shifted either right or left in response to a change in supply in the market. Causes of a change in supply might include: a change in the number of suppliers, changes in taxes or subsidies, a change in input costs, a change in technology, or a change in the expectations of producers surveying the market.
The point at which demand intersects the new supply curve. When supply increases, equilibrium price (P2) falls and quantity (Q2) increases, and vice versa.