A shift of the demand curve to the right, all other things unchanged, will increase equilibrium price and decrease equilibrium quantity.
[What is a demand curve?] A shift of the demand curve to the right.
All other things unchanged, will increase equilibrium price and decrease equilibrium quantity.
To put it in words that are more friendly for people who don’t have economics degrees.
If you raise prices because there’s not enough supply (something happens to make sellers produce less).
Customers buy fewer goods, so they’ll be paying higher prices for what they do buy.
The following sentence has been added as content with bullet points below.
A change in one or more factors from those assumed .
When calculating an original position may cause profitability levels either to improve or deteriorate.
Or changes in customer tastes and preferences.
The company may experience increasing costs of production due to its inability to carry on with the same methods it used when demand was high.
For this reason, companies must review their pricing policies often.
The old prices could become obsolete before they are put into effect if some factor substantially alters .
Previous predictions about sales volume and price elasticity (i.e., responsiveness).
A change in one or more factors from those assumed .
When calculating an original position may cause profitability levels either to improve or deteriorate.
This situation could arise due to technological advances such as lower manufacturing costs, changes in the economic environment such as devaluing a currency, or changes.
