We've examined what happens when demand or supply shift. If demand changes, price and quantity move in the same direction. This is because shifts in demand alone allow us to observe different points along the supply curve.

    If supply changes, price and quantity move in opposite directions since supply shifts show us points along the demand curve.

    What happens to equilibrium price and equilibrium quantity if both demand and supply shift?

Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved