curve. In this way, the two-dimensional demand and supply model becomes a powerful tool for analyzing a

wide range of economic circumstances.

3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process

LEARNING OBJECTIVES

By the end of this section, you will be able to:

•

Identify equilibrium price and quantity through the four-step process

• Graph equilibrium price and quantity

• Contrast shifts of demand or supply and movements along a demand or supply curve

• Graph demand and supply curves, including equilibrium price and quantity, based on real-world

examples

Let’s begin this discussion with a single economic event. It might be an event that affects demand, like a

change in income, population, tastes, prices of substitutes or complements, or expectations about future

prices. It might be an event that affects supply, like a change in natural conditions, input prices, or technology,
{"file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creationdate": "2022-12-07T14:15:44-06:00", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_name": "Microeconomics3e.pdf", "producer": "Prince 14.2 (www.princexml.com)", "file_size_mb": 26.99, "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "upload_timestamp": "2026-02-07T15:24:38.309401", "batch_upload": true, "moddate": "2022-12-07T14:23:05-06:00", "total_pages": 597, "uploaded_via": "batch_uploader", "creator": "PDFMiner", "file_type": ".pdf", "title": "Principles of Microeconomics 3e"}