Bringing Supply and Demand Together

An increase in demand results in a greater equilibrium price and a greater equilibrium quantity.

• An increase in demand results in a greater equilibrium price and a greater equilibrium quantity.
• Conversely, a decrease in demand results in a lower equilibrium price and a lower equilibrium quantity.

• An Increase in Demand

A decrease in supply results in a higher equilibrium price and a lower equilibrium quantity.

• A decrease in supply results in a higher equilibrium price and a lower equilibrium quantity.
• Conversely, an increase in supply results in a lower equilibrium price and a higher equilibrium quantity.

• A Decrease in Supply