Shift Demand and Supply

This discussion shows what happens to a market when something other than price changes.

Category:

Education

Tags:

• Shift
• Deman

[Roosjuuuhhh]

thank you very much! it helped me a lot...

but how can you explain the net gain, because of the shifting curve?

[PlainSenseEconomics]

@Roosjuuuhhh I'm sorry. I don't understand the question. Are you following up on someone else's question?

[tellmeplease100]

I believe if the demand curve shifts to the right and the price stays the same then there will be fewer suppliers able to offer at these prices so the supply curve will shift to the left.

Can you tell me if I am right?

[PlainSenseEconomics]

@tellmeplease100 Sorry I am so to respond to this. YouTube thought it was spam...go figure. The key thing to remember is that anytime demand or supply curves shift something else, other than price, is forcing that shift. So, if demand shifts to the right, due to a change in weather, for example, that will create a shortage. The supply curve doesn't shift. Instead the market will bid up the price. The new equilibrium will be at a higher price, but the supply curve has stayed in the same place.

[PlainSenseEconomics]

To "tellmeplease100": OK, if the concert is over subscribed then that means demand and supply are not at equilibrium. By definition equilibrium is when there is no surplus or shortage. So that means the ticket prices are too low and demand is larger than supply. Now the concert promoters move it to a larger venue. What happens to our demand and supply curves? There is no change in price, so what happens if there are now many more seats? Which curve shifts and in which direction?

[s33dasac]

would not weather affect the production of chocolate as well? would not the supply curve shift left as well?

[PlainSenseEconomics]

@s33dasac continued from earlier reply... The tobacco company would then plan its production mix of menthol vs regular cigarettes to match the needs of smokers who had head colds in those cities...

[tellmeplease100]

can you tell me what will happen if a pop concert is oversubscribed and need to move to a bigger venue

[JohnnyBoysOutlook1]

You the man!!

[NinjaSteve1]

Thank you so much! This was a much better explanation than my Economics teacher gave. You're the best!

[PlainSenseEconomics]

@s33dasac Yes - a savvy producer of the hot chocolate ingredients could gear up production in anticipation of cold weather. And you're right that it would shift the supply curve - to the right. Many years ago I met a weather forecaster who had a contract with a major tobacco company. He made long term forecasts for weather in major metropolitan areas. He told the tobacco company when weather that would likely spawn a lot of colds was likely to appear in a major city. ...continued on next reply