An Increase in Demand

Demand changes for any of the five reasons listed This graph shows a demand curve D1, and a supply curve S1. At the intersection of the two curves, the equilibrium price is $350,000, and the equilibrium quantity is 496. When the demand curve moves to the right, the equilibrium price increases to $420,000, and the equilibrium quantity increases to 578.in the previous section.

When the demand curve shifts to the right demand increases. The market price increases, as does the equilibrium quantity (in the short run).
A Decrease in Demand
When the demand curve shifts to the left, equilibrium price and quantity decrease (in the short run).
Video Explanation
For a video explanation of how a change in buyers’ incomes changes the demand (and the equilibrium price and quantity) for a normal good, please visit: