The demand curve shifts with changes in:
— a rise in the price of a
increases demand and shifts the demandcurve rightward; a rise in the price of a
decreases demand and shifts the demand curve left- ward.
expected future prices
— if the price of a good is ex-pected to rise in the future, the current demand forit increases and the demand curve shifts rightward.
— for a
, an increase in in-come increases demand and shifts the demand curverightward; for an
an increase in in-come decreases demand and shifts the demandcurve leftward.
expected future income
— when expected future in-come increases, the current demand might increase.
— an increase in population increasesdemand and shifts the demand curve rightward.
— if people like a good more, its demandincreases so the demand curve shifts rightward.
of a good or service is theamount that producers plan to sell during a given timeperiod at a particular price.The
law of supply
states that “other things remainingthe same, the higher the price of a good, the greater isthe quantity supplied.”
is the entire relation-ship between the quantity supplied and the price of agood. A
shows the positive relationshipbetween the price and the quantity supplied. For eachquantity, the supply curve shows the minimum price asupplier must receive in order to produce that unit of output.
Supply curves are positively sloped, as shown inFigure 3.2.
A change in the price of the product leads to a
change in the quantity supplied
movement along the supply curve
. In Figure 3.2, the movementalong
from 2,000 street hockey balls supplied per week to 4,000 balls when the price rises from $2 fora ball to $4 is a change in the quantity supplied. When any factor that influences selling plans otherthan the price of the good changes, there is a
which is illustrated
as a shift in the supply curve
. An increase in supply shifts the supply curve rightward,shown in Figure 3.2 as the shift from
; a de-crease in supply shifts the supply curve leftward.There is a change supply and a shift in the supply curvein response to changes in the following:
prices of the productive resources
used to produce the good
— a rise in the price of an input decreases sup-ply and the supply curve shifts leftward.
prices of related goods produced
— a rise in the priceof a
decreases supply and thesupply curve shifts leftward; a rise in the price of a
increases supply and thesupply curve shifts rightward.
expected future prices
— if the price is expected torise in the future, the current supply decreases andthe supply curve shifts leftward.
number of suppliers
— an increase in the number of suppliers increases supply and the supply curveshifts rightward.
— an advance in technology increasessupply and the supply curve shifts rightward.
is the price at which the quan-tity demanded equals the quantity supplied. It is de-termined by the intersection of the demand and supply curves. The
is the quantity bought and sold at the equilibrium price. Figure 3.3shows the equilibrium price, $3, and the equilibriumquantity, 3,000 street hockey balls per week. At pricesbelow the equilibrium price, a shortage exists and the
Factores que provocan desplazamiento de la curva de Demanda: