if the perfectly competitive market supply of pork bellies shifts from qs

What is going to happen to this graph and in particular, what's going to happen to our equilibrium price and

All right, now let's do this example and let's imagine the other way, let's imagine in this scenario our supply goes down. If I draw a dotted line, we see our equilibrium price P2 is lower and our equilibrium quantity Q2 is higher, once again, assuming that we have a downwards sloping demand curve like this which is what you would typically see and so, in this case, let me just write it here, we have our quantity, actually, let me write it this way, we have our price goes down and our quantity goes up. Supply curve shift to the right, I'll call this S2 right over here, it's shifting to the right and down and so, given this, what happens to our equilibrium price and our equilibrium quantity? Well, you see it right over here. Supply more quantity, so here we would have our So, one way to think about it is at any given price, people are willing to So, in this first scenario, let's imagine that all of a sudden a major ice cream producer enters into the market, so here we're going to this first one, we're gonna think about a situation where the supply goes up.

To the equilibrium price and the equilibrium quantity given different shifts in the supply or the demand curve or both of them. Now with that out of the way, let's think about what happens Label all of these things including P1 and Q1 and show this dotted line where it intersects the horizontal axis, this is Q1 and where it Sloping demand curve, D1 and where they intersect, that gives us our equilibrium price, P1 and our equilibrium quantity, Q1 and once again, if you were taking some type of a standardized test, it's important that you Kind of our starting point and then we have our downwards Q representing quantity, we have our upwards sloping supply curve. It's important to title your graphs, especially if you were taking some type of a standardized exam like an AP exam and in the vertical axis we have P representing price, and then the horizontal axis, Let's say in a given region in the ice cream market. Each of them is showing where we are right now, Have eight versions of the exact same diagram. What we're going to do in this video is think aboutĪll of the different ways that a supply curve orĪ demand curve can shift and that's why we actually

If the perfectly competitive market supply of pork bellies shifts from qs