Shifts in demand

• Increase in demand

  • Increase in demand leads to increase in equilibrium prices.
  • Increase in demand is shown by D moving to D1.
  • The equilibrium price is forced up from E to E1.
  • The amt sold in the market goes uo from Q to Q1.

  
• Decrease in demand

  • A decrease in demand leads to prices decreasing too.
  • Demand decreasing is shown by movement from D to D1.
  • Decrease in equilibrium price is shown by movement from E to E1.
  • The qty supplied also decreases and is shown by movement from Q to Q1.