Krugman AP MacroEconomics Chapter 7
Subject:
Economics [1]
Tags:
economics [2]
demand [3]
Consumer theory [4]
macroeconomics [5]
Pricing [6]
Economic surplus [9]
Demand curve [10]
supply [11]
Quantity adjustment [12]
AD-AS model [13]
Politics [14]
Business [15]
behavior [16]
Human development [17]
Computing [18]
Electronic documents [20]
Psychoanalysis [22]
Human behavior [23]
Attachment theory [25]
Technology [26]
?? Chapter 7: Supply and Demand: Changes in Equilibrium ? substitutes: if the price of good1 rises, the demand for good2 will increase if the price of good1 falls, the demand for good2 will decrease An increase in demand leads to a rise in both the equilibrium price and the equilibrium quantity. A decrease in demand leads to a fall in both the equilibrium price and the equilibrium quantity. Increase in demand: rightward shift of the demand curve market is no longer in equilibrium shortage: quantity demanded exceeds quantity supplied price rises increase in the quantity supplied upward movement along the supply curve new equilibrium When demand for a good or service increases, the equilibrium price and the equilibrium quantity of the