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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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- Winter '08
- Supply And Demand