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Supply and Demand Curves
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New health data indicating a product is harmful
Demand curve shifts left, causing both equilibrium price and quantity to decrease.
Large demographic changes leading to more consumers
Demand curve shifts right, resulting in a higher equilibrium price and quantity.
Introduction of a new luxury tax
Demand curve for luxury goods shifts left, leading to lower prices and quantities.
Increase in the price of a complementary good
Demand curve shifts left, equilibrium price and quantity decrease.
Introduction of a subsidy for producers
Supply curve shifts right, equilibrium price decreases, equilibrium quantity increases.
Decrease in the number of suppliers
Supply curve shifts left, equilibrium price increases, equilibrium quantity decreases.
Increase in consumer preferences for a good
Demand curve shifts right, leading to a higher equilibrium price and quantity.
Introduction of a minimum wage above equilibrium wage
Results in a surplus of labor as quantity supplied increases and quantity demanded decreases.
Discovery of new natural resources
Supply curve shifts right, leading to a decrease in equilibrium price and an increase in equilibrium quantity.
Rising labor costs
Supply curve shifts left as goods become more expensive to produce, leading to higher prices and lower quantities.
Sudden increase in interest rates
Demand curve for credit-reliant goods shifts left, causing equilibrium price and quantity to decrease.
Removal of trade barriers
Supply curve shifts right as imported goods increase, leading to lower domestic prices and higher quantities.
Negative externalities from a product becoming public knowledge
Demand curve shifts left as consumers choose to avoid the product, resulting in lower equilibrium prices and quantities.
Climate change affecting crop yields
Supply curve for affected crops shifts left, increasing price and decreasing quantity.
Outbreak of disease in livestock
Supply curve for livestock products shifts left, leading to higher prices and lower quantities.
A major competitor exits the market
Supply curve shifts left, equilibrium price increases, and equilibrium quantity decreases.
Technological obsolescence of a product
Demand curve shifts left, resulting in a lower price and quantity for the obsolete product.
Widespread adoption of automation
Supply curve shifts right due to reduced production costs, resulting in lower prices and higher quantities.
Increase in consumer income
Demand curve shifts right, leading to higher equilibrium price and quantity.
Rise in the price of a substitute good
Demand curve shifts right, equilibrium price and quantity increase.
Increase in tariffs on imported goods
Supply curve for these goods shifts left, leading to higher prices and lower quantities domestically.
Globalization leading to increased competition
Supply curve shifts right as more products enter the market, resulting in lower prices and higher quantities.
Increasing urbanization
Demand for housing and related services in urban areas shifts right, increasing equilibrium prices and quantities.
Improvement in production technology
Supply curve shifts right, resulting in lower equilibrium price and higher equilibrium quantity.
Global pandemic affecting production
Supply curve shifts left due to production slowdowns, increasing prices and decreasing quantities.
Advancement in logistics and transportation
Supply curve shifts right, resulting in lower equilibrium prices and higher quantities due to decreased shipping costs.
Decrease in taxes on producers
Supply curve shifts right, leading to a lower equilibrium price and a higher equilibrium quantity.
Commodity price shock
Supply curve of goods using the commodity shifts left, increasing the price and decreasing the quantity of those goods.
Surge in exports due to foreign demand
Supply curve in the domestic market shifts left, leading to higher domestic prices and lower quantity.
Cultural shift toward sustainable products
Demand for sustainable goods shifts right, increasing their equilibrium price and quantity.
Expiration of patents
Supply curve shifts right, causing a decrease in equilibrium price and an increase in equilibrium quantity.
Government-imposed price ceiling below current price
Results in a shortage as quantity demanded increases and quantity supplied decreases.
Economic recession
Demand curve shifts left as consumers spend less, leading to lower prices and quantities for most goods.
New government health campaign
Demand curve for healthy products shifts right, leading to higher prices and quantities; unhealthy products' demand shifts left.
Increase in production costs due to new regulations
Supply curve shifts left, leading to a higher equilibrium price and a lower equilibrium quantity.
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