Market Disequilibrium and Changes in Equilibrium - AP Microeconomics

Supply increases. Lower production costs shift supply curve rightward.

Supply increases. Lower production costs shift supply curve rightward.

Equilibrium quantity decreases. Lower demand shifts curve left, reducing equilibrium quantity.

Supply decreases. Tax increases producers' costs, shifting supply curve leftward.

Price adjusts to bring quantity supplied and demanded into balance. Market forces naturally move toward equilibrium through price changes.

It causes a surplus. Quantity supplied exceeds quantity demanded at the floor price.

It causes a shortage. Quantity demanded exceeds quantity supplied at the ceiling price.

The price at which quantity demanded equals quantity supplied. Market clearing price where supply and demand curves intersect.

Price tends to increase. Excess demand creates upward pressure on price through bidding.

Price tends to decrease. Excess supply creates downward pressure on price through competition.

A mismatch between quantity supplied and quantity demanded. This occurs when markets are not in balance at current prices.

Quantity increases; price is indeterminate. Price depends on relative magnitude of supply and demand changes.

Quantity decreases; price is indeterminate. Price depends on relative magnitude of supply and demand changes.

Shortage of 30 units. Shortage equals quantity demanded minus quantity supplied.

Equilibrium price decreases. Higher supply shifts curve right, lowering equilibrium price.

Surplus of 30 units. Surplus equals quantity supplied minus quantity demanded.

Difference between what consumers are willing to pay and what they actually pay. Area below demand curve and above market price.

Difference between what producers receive and the minimum they would accept. Area above supply curve and below market price.

Supply increases. Lower production costs shift supply curve rightward.

Supply increases. Government payment lowers producers' costs, increasing supply.

Equilibrium price increases. Higher demand shifts curve right, raising equilibrium price.

Equilibrium quantity decreases. Lower supply shifts curve left, reducing equilibrium quantity.

Price increases; quantity increases. Rightward demand shift increases both price and quantity.

Price increases; quantity decreases. Leftward supply shift increases price but decreases quantity.

Supply decreases. Higher production costs shift supply curve leftward.

Supply increases. Lower production costs shift supply curve rightward.

Quantity decreases; price is indeterminate. Leftward shifts in both curves reduce quantity traded.

Quantity increases; price is indeterminate. Rightward shifts in both curves increase quantity traded.

Price decreases; quantity decreases. Leftward demand shift decreases both price and quantity.