At the original equilibrium price a shortage develops. Prices rise in response to the shortage. Market effects of the change equilibrium price rises. The above are reversed for a decrease in demand. At the original equilibrium price a shortage develops.
Prices rise in response to the shortage.
Market effects of the change equilibrium price rises. The above are reversed for an increase in supply. Simultaneous Shifts in Supply and Demand Market effects of an increase in demand and a decrease in supply. An increase in both supply and demand. A decrease in both supply and demand.