--- title: "Shifts in Demand and Supply" description: "Changes in income, tastes, related prices, production costs or weather can shift demand or supply. Identify the affected curve and its direction, then compare the old and new equilibrium under stated " canonical: https://lightmysky.com/learn/civics-and-economics/shifts-in-demand-and-supply-mt_z7FcJ9BAz3 source: https://lightmysky.com/learn/civics-and-economics/shifts-in-demand-and-supply-mt_z7FcJ9BAz3.md retrieved: 2026-11-13 --- > **Agent view.** This is the Markdown twin of the page, for tools and assistants. > When to use this site, and the call that answers each job: https://lightmysky.com/agent-instructions.md > API description (OpenAPI 3.1): https://lightmysky.com/openapi.json · Authentication: https://lightmysky.com/auth.md > Pricing: https://lightmysky.com/pricing.md · Catalog: https://lightmysky.com/llms.txt · Full catalog: https://lightmysky.com/llms-full.txt > Every machine-readable file on this domain: https://lightmysky.com/.well-known/ai-catalog.json > Ask for Markdown with `Accept: text/markdown`, a `.md` address, or `?mode=agent`. # Shifts in Demand and Supply Changes in income, tastes, related prices, production costs or weather can shift demand or supply. Identify the affected curve and its direction, then compare the old and new equilibrium under stated assumptions. Subject: Civics & Economics · Area: Economics · Ages 14 to 16 Page: https://lightmysky.com/learn/civics-and-economics/shifts-in-demand-and-supply-mt_z7FcJ9BAz3 ## Ready when they can - Sort an event into a shift of demand, a shift of supply, or a movement along a curve - Work a news story through the four steps and predict the direction of equilibrium price and quantity changes; read their values when a schedule is given - Explain the 'other things equal' assumption and why the model needs it ## Lesson: When the whole curve moves You know equilibrium is where planned buying and selling match. A change in a good's own price moves along its curve. A shift changes quantity at each given price: more means right, less means left. Tastes, income, expectations or substitute prices can shift demand. A substitute can replace another good. Higher income raises demand for a normal good. With supply unchanged and upward-sloping, that demand increase raises equilibrium price and quantity. **Example.** Supply shifts when conditions change how much sellers can offer at each price. Inputs are resources used in production. Lower input costs, cost-saving technology or a lower tax per unit can shift supply right. Crop damage can shift it left. For example, hail damages a pear harvest. At $4 per bag, growers offer 10 bags before and 6 after. This compares supply at the same price; it does not predict the new equilibrium. Use four steps: mark the original equilibrium; choose demand or supply; shift it left or right; compare the new equilibrium. In a schedule, equilibrium is the row where quantities demanded and supplied match. With demand sloping down and supply sloping up, a left shift of supply raises price and cuts quantity; a right shift lowers price and raises quantity. Keep demand fixed: the price change moves along it, not to a new demand curve. 'Other things equal' means holding other relevant influences constant while studying one change. Price and quantity can still adjust. Real events can happen together: analyse each shift separately, then combine the results. If demand and supply both shift right in the standard model, quantity rises. Price may rise, fall or stay unchanged because the two shifts push price in opposite directions. Their sizes determine the price result. **Recap.** The good's own price moves along a curve. Other factors can shift curves. Compare equilibria while keeping the stated assumptions in view. *Lesson, questions and flashcards written for this dataset. Economics reference records were consulted for concepts and teaching structure.* ## Practice 8 questions on this page, each with its working shown. ## Needs first - [Market Equilibrium, Shortage and Surplus](https://lightmysky.com/learn/civics-and-economics/market-equilibrium-shortage-and-surplus-mt_SarFx2o1IM) ## Opens up - [Price Elasticity of Demand](https://lightmysky.com/learn/civics-and-economics/price-elasticity-of-demand-mt_4ktSwG3D5q)