1. Double Shifts in Supply and Demand

2. Today’s Agenda
Objective: To explain the change in price and quantity when there is a shift in both supply and demand.
Essential Skill: To demonstrate an understanding of concepts.

3. Review of Single Curve Shifts

5. Dual Shifts
D S
P ? Q
D S
P ? Q
D S
P Q?
D S
P Q?

6. Quantity of Video Games (thousands)
P increase Q same
Decrease in Demand S1 S1 S1 S0 E1 E1 D0 E1
Price ($)
Pe1 E Pe
Now lets look at a leftward shift of the demand curve.
Suppose that video games and video game consuls are complimentary goods.
If the price for video game consul increases the demand for video games is going to decrease.
This leftward shift of demand will cause the price to fall from P to P1 and the Equilibrium Quantity from Q to Q1.
So when demand shifts to the left the Price will decrease and the Quantity will decrease.
The supply curve does not move no shift in supply however we move point to point along the supply curve meaning the quantity supply is moving. D1
Qe1 Qe
Quantity of Video Games (thousands)

7. Tip S
P increases Q increases
P increases Q decreases

8. Practice Complete the worksheet Use the tip to check your answers
Compare answers with a partner