Excess demand and excess supply
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Changes in demand and supply
We can now see how shifts of supply and demand curves cause changes in prices and quantities bought and sold. In the next two pages, there are two example markets with a series of changes to each. Try working through each one and check that you understand how the curves shift. Click on the right arrow at the top or bottom of the page to look at the first example.
Summary
Having worked through this unit you should be able to:
1. Define a market
2. Show how it responds to changes in supply and demand
3. Demonstrate that movements along a demand curve come as a result of a shift in the supply curve, and movements along a supply curve from a shift of the demand curve.