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The market equilibrium changes all the time as demand and supply conditions change How do the curves shift? First, we gotta know who cares? Buyers or sellers? Which direction does the curve shift? How does price and quantity change? Lets recap Heres the factors affecting supply and demand Suppose income increases People have more money they buy more stuff Ah it increases demand Demand curve shifts right Demand curve shifts right Price increases Quantity increases When income drops Demand decreases Demand curve shifts left Demand curve shifts left Price decreases Quantity decreases When wages decrease Remember, labor is a type of input Input prices decrease Producers can produce more with the same budget now So supply increases Supply shifts right Supply shifts right Price decreases Quantity increases When wages increase Input prices increase Supply decreases Supply shifts left Supply shifts left Price increases Quantity decreases Seems simple Cool, what happens if both supply and
