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The Effects of Supply and Demand September 23, 2008

Posted by petrarcanomics in Markets: Supply & Demand, More Markets & Elasticity.
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A demand increase will cause a shift to the right in the demand curve, causing both price and quantity to increase. A demand decrease will cause a shift to the left in the demand curve, causing both price and quantity to decrease.

A supply increase will cause a shift to the right in the supply curve, causing price to decrease and quantity to increase. A supply decrease will cause a shift to the left in the supply curve, causing price to increase and quantity to decrease.

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