Unformatted text preview: Shifts upward (supply decreases) Price increases, quantity increases Stays the same Shifts downward Supply increases) Price decreases, quantity decreases Equilibrium vs. Disequilibrium Equilibrium: quantity supplied = quantity demanded the intersection of the supply and demand curve Disequilibrium: Price change Quantity Demanded Quantity Supplied What happens? Price is below equilibrium Increases Decreases Shortage Price is above equilibrium Decreases Increases Surplus...
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This note was uploaded on 04/17/2008 for the course ECON 1A taught by Professor Modjtahedi during the Winter '08 term at UC Davis.
- Winter '08
- Supply And Demand