- The shift in the supply curve indicates a change in the quantity supplied at every price level due to non-price factors like technology, input costs, or number of sellers.
- If the supply curve shifts to the left from B to A, the quantity supplied at each price decreases, which typically leads to a higher equilibrium price and lower equilibrium quantity.
- If the supply curve shifts to the right from B to C, the quantity supplied at each price increases, which typically leads to a lower equilibrium price and higher equilibrium quantity.
- The shift in the demand curve indicates a change in the quantity demanded at every price level due to non-price factors like income, tastes, or number of buyers.
- If the demand curve shifts to the left from B to A, the quantity demanded at each price decreases, which typically leads to a lower equilibrium price and lower equilibrium quantity.
- If the demand curve shifts to the right from B to C, the quantity demanded at each price increases, which typically leads to a higher equilibrium price and higher equilibrium quantity.
Parent Tip: Review the logic above to help your child master the concept of economics supply and demand worksheet.
