question archive How do movements in the demand curve and the supply curve affect market equilibrium?
How do movements in the demand curve and the supply curve affect market equilibrium?
Subject:MarketingPrice:2.88 Bought3
How do movements in the demand curve and the supply curve affect market equilibrium?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Movements in the demand and supply curve change the market equilibrium.
- If the supply curve shifts to the right, it brings down the prices in the market for the same level of quantity.
- If the demand curve shifts to the right, it brings up the prices in the market for the same level of quantity.
- If the supply curve shifts to the left, it brings up the prices in the market for the same level of quantity.
- If the demand curve shifts to the left, it brings down the prices in the market for the same level of quantity.
If both the curves shift in the same direction, the net effect on the equilibrium will depend upon the proportionate changes in the curves.
