Shifts in supply and demand, Microeconomics

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Shifts in Supply and Demand

When supply and demand vary at the same time, the impact on the equilibrium price and quantity is known by:

1. The shape of the supply and demand curves

2. The relative size and direction of the change

The Prices of Eggs & Education Revisited

The actual price of eggs fall 59% from 1970 to 1998.
Supply increased because of increased mechanization of poultry farming and the decreased cost of production.
Demand decreased as the increasing consumer concern over the health and cholesterol outcomes of eating eggs.

Market for Eggs

1120_shift in supply and demand.png

Price of College Education

The actual price of a college education rise 68 % from 1970 to 1995.
Supply decreased because of higher costs of equipping and maintaining modern laboratories, classrooms, and libraries, and higher faculty salaries.
Demand rises as a larger percentage of high school graduates attending college.

Market for College Education

82_shift in supply and demand1.png

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