Microeconomics

This page is dedicated to helping students develop a better understanding of the various microeconomic forces at work in our economy.  A primer is included on the basics of demand and supply - both essential concepts in developing a sound understanding of economics.  If you are having difficulty with manipulating demand and supply curves, study the overview below.  In addition, a list of topic links have been included so that you can further develop your knowledge and skills for the topics of study within this unit.

---

DEMAND AND SUPPLY CONCEPTS

Change In Demand (Shifts in Demand)
Means that a greater or lesser number of units is bought without changing price. This means a shift in the demand curve. If it shifts up and to the right, a greater number of units is demanded at any given price. If it shifts down and to the left, a lesser number of units is demanded at any given price.

Change in Quantity Demanded
Means that a greater or lesser number of units is bought because of a change in price. An increase in quantity demanded means that a greater number of units is bought because the price has been lowered. We are moving down a particular demand curve. A decrease in quantity demanded means that a lesser number of units is bought because the price has been raised. We are moving up a particular demand curve.

Change in Supply (Shifts in Supply)
Means that a greater or lesser number of units is supplied without changing price. This means a shift in the supply curve. If it shifts up and to the left, a lesser number of units is supplied at any given price. If it shifts down and to the right, a greater number of units is supplied at any given price.

Change in Quantity Supplied
Means that a greater or lesser number of units is supplied because of a change in price. An increase in quantity supplied means that a greater number of units is supplied because the price has been raised. We are moving up a particular supply curve. A decrease in quantity supplied means that a lesser number of units is supplied because the price has been lowered. We are moving down a particular supply curve.

---

REVIEW

Still not sure about the difference between a change in demand and a change in quantity demanded?

Examine this brief review of the difference between a change in demand and a change in quantity demanded.  If you still don't quite understand it yet, see me for further review and practice at the website links provided below before the test.

Related Resources

Demand, Supply and Market Equilibrium Test  (test how well you know demand and supply theory)