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Moving the Equilibrium
Transcript of Moving the Equilibrium
the point where supply and demand intersect and are balanced
By: Emilie Botello
Economic markets try to have an equilibrium but the equilibrium can change...
Because equilibrium is where the demand and supply curves intersect, anything that shifts the demand or supply curves make a new equilibrium.
Since Mr. Bunny got a promotion, his paycheck goes up. Which leads to a right shift in the demand curve.
He has more money and can demand more shoes
The prices of laptops goes up which leads to a decrease in demand for laptop chargers.
The demand for laptop chargers goes down and so does the price.
( Laptop Chargers )
The price of Ham goes up so the substitute good would be the steak.
Steak is cheaper so people want to buy more steak rather than ham, making the demand curve for steak increase.
If a machine was made that could make 10x more pens than what it was before then the supply curve will go up.
Scenario # 5
The government adds a new tax on veggies.
The price goes up so less veggies are supplied.
People want to buy more pens because there is a surplus, causing the price of pens going down.
The steel price went up so its harder to make cars.
People who still demand cars have to pay more to get the car they want.