Civil Engineering Reference
In-Depth Information
Figure 5.4
Changing market conditions across three markets
The three hypothetical markets and the changes described in
Table 5.3
are plotted.
In market A we assume an increase in demand causing quantity and price to increase.
In market B we assume an increase in supply causing quantity to increase and price to
decrease. In market C we assume an increase in demand and a long-run decrease in
supply causing a higher equilibrium price but no significant short-run change to quantity.
S
2
C
S
A
S
1
B
D
1
D
Quantity per period
