An Overview of Shifts in the Market Equilibrium
This post will help further your understanding of the effects of changes in supply and demand on the market equilibrium as part of your Prelim Economics course. Shifts in the market equilibrium can occur when demand or supply change. When one curve shifts either left or right, a new equilibrium market price and equilibrium market quantity is created.
Similar to the market equilibrium itself, both the Preliminary and HSC Economics course require you to graph these changes, illustrating the shift in the market equilibrium from one point to another. The video below explains how this can occur, whilst also showing you how to graph these changes.