How Do Shifts in Demand and Supply Affect the Market?
Shifts in demand or supply can lead to changes in the market equilibrium. A shift in demand curve occurs when a non-price factor changes, such as an increase in consumer income or a change in tastes. This can either increase or decrease the quantity demanded at all price levels. Similarly, a shift in supply curve happens due to changes in production costs or technological advancements, affecting the quantity supplied at different prices.