Supply and Demand Flashcards
how is price changed on an S and D graph
demand change shifts demand curve
supply change shifts supply curve
both creates a new equlibrium
what does indeterminate mean in relation to curves
the de or in crease depends on which curve shifts more
increase in demand
no change in supply =
(price, quantity, direction of shift)
price increase
quantity increase
(shift to right)
decrease in demand
no change in supply =
(price, quantity, direction of shift)
price decrease
quantity decrease
(shift to left)
no change in demand
increase in supply =
(price, quantity, direction of shift)
price decrease
quantity increase
(shifts to right)
no change in demand
decrease in supply =
(price, quantity, direction of shift)
price increase
quantity decrease
(shifts to left)
what is a simultaneous shift
if both curves shift at the same time
what happens if both curves change the same amount
price will stay the same
increase in demand
increase in supply =
(price, quantity)
price indeterminate
quantity increase
increase in demand
decrease in supply =
(price, quantity)
price increase
quantity indeterminate
decrease in demand
increase in supply =
(price, quantity)
price decrease
quantity indeterminate
decrease in demand
decrease in supply =
(price, quantity)
price indeterminate
quantity decrease
