p1< pe: qd(p1)>qs(p1) a Quantity demanded will start to fall, reflecting the fundamental behaviour of consumers a Quantity supplied will start to rise, reflecting the fundamental behaviour of suppliers p2>pe: gs(p2)>qd(p2) a Quantity demanded will increase, reflecting the fundamental behaviour of consumers a Quantity supplied will decrease, reflecting the fundamental behaviour of suppliers
◼ p1< pe: qd(p1) >qs(p1) ❑ Quantity demanded will start to fall, reflecting the fundamental behaviour of consumers ❑ Quantity supplied will start to rise , reflecting the fundamental behaviour of suppliers. ◼ p2 > pe: qs(p2) >qd(p2) ❑ Quantity demanded will increase , reflecting the fundamental behaviour of consumers ❑ Quantity supplied will decrease , reflecting the fundamental behaviour of suppliers
Diagram 9.4 Demand and Supply 1000 900 800 700 60 ) 日4 as ter)= 200 已 15 p-price per unit
SHiFTS in demand and SUPPLY Some outside force was to come along and influence the behaviour of either consumers or producers, then the market equilibrium would change Our problem now is to identify potential sources of market disturbance
SHIFTS in DEMAND and SUPPLY ◼ Some outside force was to come along and influence the behaviour of either consumers or producers, then the market equilibrium would change. ◼ Our problem now is to identify potential sources of market disturbance