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### Course: AP®︎/College Macroeconomics>Unit 1

Lesson 6: Market equilibrium, disequilibrium, and changes in equilibrium

# Changes in equilibrium price and quantity when supply and demand change

Previously we looked at what happens to the equilibrium price and quantity in a market if supply or demand change. In this video, we explore what happens when BOTH supply and demand are changing at the same time.

## Want to join the conversation?

• Where can I find the other half of the video?
• Someone at Khan please also add the other half of the video as a lesson.
Right now it the lesson is titled: Changes in equilibrium price and quantity when supply and demand change
--- for the video --- Equilibrium price and quantity from changes in both supply and demand
and the second video (which is called as the title) is missing. Ty, much love :)
• There is a problem with the video; I can only view half of it.
• https://youtu.be/UQVwgC7MAHM here's the rest if you happened to need it (someone else posted it above though)
• For the first graph, wouldn't the demand curve shift down for the ice-cream because there is a better ice-cream being launched there? and the supply curve increased because they will supply as much as they can at any price to maintain their position in the market is that correct?
(1 vote)
• No, in the first graph supply is increasing because there is a new firm entering the market. The number of firms in a market is a determinant of supply, not demand.
• Can the other half of the video get posted? Youtube links don't work anymore
(1 vote)
• I got confused with all of the graphs, can someone explain to me in a better way please
(1 vote)
• When something makes it harder to produce a good, its supply tends to decrease. Now it's harder to produce it, so the price increases and demand decreases as people are less willing to buy it. The opposite happens when it is easy to produce something; price goes down, demand increases. Now, if demand changes first, let's say that due to preferences or population it increased. Then supplies need to increase, and the price goes up too.

If we produce a lot and sell it at high price, the low demand might make we have surpluses right? on the other hand if we are not producing much, selling it cheap and demand is too high we would have shortages. That is why equilibrium is important, that is where the demand and supply meets.

(1 vote)