Question

How does one analyze a market where both

demand and supply shift?

Short answer

One can investigate a market when both curves move by comparing the initial price and quantity to the price and quantity calculated at the new equilibrium point.

Step-by-step solution

Step 1. Define demand and supply.

Demand is an economic theory that refers to a consumer's desire to buy products and services as well as their readiness to pay a price for them.

The total amount of a certain commodity or service available to customers is described by supply, which is a fundamental economic notion.

Step 2. How does one analyze a market where both demand and supply shift?

The equilibrium price and quantity are affected by changes in demand and supply.

The equilibrium price is the price at which the amount demanded equals the quantity supplied of a certain commodity. Equilibrium quantity refers to the amount of a commodity at which products and services are sought or provided at the equilibrium price.

One can investigate a market when both curves move by comparing the initial price and quantity to the price and quantity calculated at the new equilibrium point.