A price of $2 and a quantity of 4 units of X are the equilibrium price and quantity only when the demand and supply for good X are exactly as depicted in Figure 1 . If either the demand curve or the supply curve shifts, the equilibrium price and quantity change. Examples of shifts in the demand and supply curves and the resultant changes in equilibrium are illustrated in Figures 2 (a) and 2 (b). In Figure 2 (a), a shift to left of the demand curve, from D A to D B , leads to a decrease in both the equilibrium price and quantity of good X , while a shift to the right of the demand curve, from D A to D C , leads to an
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