0
there are two things in regards to demand. one is demand the other is quantity demanded. if the demand curve stays the same and supply curve shifts right, the price of the item will decrease and quantity demanded will also decrease
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What happens when the demand curve shifts to the right?
there are two things in regards to demand. one is demand the other is quantity demanded. if the demand curve stays the same and supply curve shifts right, the price of the item will decrease and quantity demanded will also decrease
Why does the supply curve increase or decrease?
The supply and demand curve follows four basic laws :If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.
What happens with an increase in deficit spending?
the demand for loanable funds will increase, interest rates will increase
What happens if demand curve interacts with the supply curve?
Then demand and supply are equal.
Ceteris paribus the price level will fall when A The aggregate supply curve shifts to the left B The aggregate demand curve shifts to the left C The aggregate demand curve shifts to the right?
b
What happens when the demand curve shifts to the right?
there are two things in regards to demand. one is demand the other is quantity demanded. if the demand curve stays the same and supply curve shifts right, the price of the item will decrease and quantity demanded will also decrease
Why does the supply curve increase or decrease?
The supply and demand curve follows four basic laws :If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.
What happens with an increase in deficit spending?
the demand for loanable funds will increase, interest rates will increase
What happens if demand curve interacts with the supply curve?
Then demand and supply are equal.
Ceteris paribus the price level will fall when A The aggregate supply curve shifts to the left B The aggregate demand curve shifts to the left C The aggregate demand curve shifts to the right?
b
Explain what happens when the demand curve intersects with the supply curve?
explain what happens inside curve sample
Is demand needed in equilibrium?
Yes. Equilibrium is created at the intersection of the Demand curve and Supply Curve. Equilibrium can be shifted if the Demand curve increases or decreases, and the same happens when the Supply curve increases or decreases. Without demand, you would just have a Supply curve.
What happens to the shifting of LM curve when there is an increase in demand of money?
It shifts to the left
What happens when both supply and demand rise equally?
There is two types of increase for supply. 1) Movement along the demand curve (upwards or downwards) which is subjected to the shifting of the demand curve 2) Shift of the supply curve. For the first case, the supply curve does not shift but there is increased production to meet the new market demand. Supply will increase as there is a upward movement along the supply curve, and until the new market equilibrium is achieved. For the second case, Supply shifts right and hence the upward movement along the demand curve.
What is aggregate shock?
In economics, the supply curve in the aggregate supply and demand model shifts drastically to the left due to an inadequacy of resources or because the demand overpowers the supply.
When any effort by government causes the supply of a good to rise what happens to the supply curve for that good?
It shifts to the right.
When any effort by government cause the supply of a good to rise what happens to the supply curve for that good?
It shifts to the right.
