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This following graph demonstrates a shift in the demand curve.
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- P - price
- Q - quantity
- D1 - initial demand curve
- P1 - equilibrium price
- Q1 - equilibrium quantity
- D2 - shifted demand curve
- P2 - equilibrium price after shift
- Q2 - equilibrium quantity after shift
- S - supply curve
Due to the shift because of the increase in demand, both the initial equilibrium states have moved to a higher price & quantity.
basics | supply | demand | equilibrium | shortage | surplus | graphs