Login | Signup now       

Guest

 Click to see how  

HOME | VIDEOS | DOCUMENTS | COLLECTIONS | UPLOAD | BROADCAST | MY ACCOUNT | FEEDBACK | ABOUT

Share  Title: Changes in Supply and Demand

 
iConnect (Beta)   |  Like   |    Sponsor  |   Comment   |    Report  

Related Profiles

If you are an author or an inventor or an individual related to the work displayed in this video, you can click on the 'add me as' button to link your researchusa profile to this entry. Doing so automatically puts you on the iConnect network bringing great visibility to all your related work.

    
 
Article

View Cross Ref (Beta)

Your Edit is Valuable. Editor's names show on Edit pannel.Edit this article  

 

Practical uses of supply and demand analysis often center on the different variables that change equilibrium price and quantity, represented as shifts in the respective curves. Comparative statics of such a shift traces the effects from the initial eqilibrium to the new equilibrium.

People increasing the quantity demanded at a given price are referred to as an increase in demand. Increased demand can be represented on the graph as the curve being shifted outward. At each price point, a greater quantity is demanded, as from the initial curve D1 to the new curve D2. More people wanting coffee is an example. In the diagram, this raises the equilibrium price from P1 to the higher P2. This raises the equilibrium quantity from Q1 to the higher Q2. A movement along a given demand curve can be described as a "change in the quantity demanded" to distinguish it from a "change in demand," that is, a shift of the curve. In the example above, there has been an increase in demand which has caused an in increase in (equilibrium) quantity. The increase in demand could also come from changing tastes, incomes, product information, fashions, and so forth.

When the suppliers' costs change for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing wheat so that the cost of wheat that can be grown for a given quantity will decrease. Otherwise stated, producers will be willing to supply more wheat at every price and this shifts the supply curve S1 outward, to S2—an increase in supply. This increase in supply causes the equilibrium price to decrease from P1 to P2. The equilibrium quantity increases from Q1 to Q2 as the quantity demanded increases at the new lower prices. In a supply curve shift, the price and the quantity move in opposite directions.

 

 
Related Documents
 
Member Documents
 

Keywords
supply  demand  changes  economics  
 
 About This Video
 
 Subject Economics
 Category Discussion
 Duration 00:13:56
 Views 2999
 Added 13-11-07
 Contributor    123456
 Add to Favourites
 Report Abuse
 
 Related Videos
 See More

Supply

 RunTime  00:07:54
 Uploaded  13-11-07
 Views  2886
   
 Supply

Applications

 RunTime  00:14:04
 Uploaded  13-11-07
 Views  3334
   
 Applications of Supply an...

Demand

 RunTime  00:11:34
 Uploaded  11-11-07
 Views  2657
   
 Demand

Competitive

 RunTime  00:08:43
 Uploaded  13-11-07
 Views  2880
   
 Competitive Market Effici...

Elon

 RunTime  moderate
 Uploaded  19-01-15
 Views  1012
   
 Elon Musk Gives a Tour of...

Ruben's

 RunTime  00:02:48
 Uploaded  25-11-07
 Views  3252
   
 Ruben's Tube

Conversations

 RunTime  moderate
 Uploaded  10-09-10
 Views  3120
   
 Conversations with Histor...

Monitoring

 RunTime  00:06:37
 Uploaded  12-11-07
 Views  2719
   
 Monitoring Workers

Jumping

 RunTime  moderate
 Uploaded  20-03-13
 Views  1507
   
 Jumping droplets help hea...

New

 RunTime  00:10:39
 Uploaded  08-01-08
 Views  2900
   
 New Diabetes Research

Rational

 RunTime  00:12:35
 Uploaded  14-11-07
 Views  2531
   
 Rational Behaviour

Comparative

 RunTime  00:08:17
 Uploaded  11-11-07
 Views  3090
   
 Comparative Advantage

High

 RunTime  00:00:09
 Uploaded  13-02-09
 Views  3918
   
 High voltage disconnect s...

Stirling

 RunTime  00:02:05
 Uploaded  11-12-07
 Views  3420
   
 Stirling engine example

Video

 RunTime  00:03:20
 Uploaded  28-11-07
 Views  3095
   
 Video Journey Into Nanote...

 Member Videos
 See More

Nanotechnology

 RunTime  00:10:28
 Uploaded  27-11-07
 Views  7384
   
 Nanotechnology Takes Off ...

Blood:

 RunTime  00:00:02
 Uploaded  01-11-07
 Views  4075
   
 Blood: Path of a Red Bloo...

The

 RunTime  00:00:02
 Uploaded  03-11-07
 Views  3962
   
 The Civil War: Honorable ...

Manipulating

 RunTime  00:00:02
 Uploaded  18-10-07
 Views  3899
   
 Manipulating Animated Fun...

Matlab

 RunTime  00:00:02
 Uploaded  18-10-07
 Views  3871
   
 Matlab Tutorial for the b...

Sound

 RunTime  00:05:03
 Uploaded  24-11-07
 Views  3728
   
 Sound & Vision (Animation...

Oppenheimer

 RunTime  00:00:02
 Uploaded  03-11-07
 Views  3719
   
 Oppenheimer

CEV

 RunTime  00:00:02
 Uploaded  22-10-07
 Views  3698
   
 CEV NASA space launch roc...

The

 RunTime  00:00:02
 Uploaded  06-11-07
 Views  3686
   
 The Hubble Deep Field: Th...

The

 RunTime  00:00:02
 Uploaded  03-11-07
 Views  3501
   
 The Triumph and Tragedy o...

Aerodynamics

 RunTime  00:00:02
 Uploaded  19-10-07
 Views  3418
   
 Aerodynamics

Terry

 RunTime  00:00:02
 Uploaded  18-10-07
 Views  3388
   
 Terry Tao Fields Medal In...

 

 

Comments | Queries | Clarifications