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Economics IGCSEPDF 28
118 pagesrevision 46932
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is the price at which the demand and supply curves in a given
is the price at which market demand and supply curves do not meet.
rises, the supply rises; and vice versa.
• Technological changes: an introduction of new technology will increase the ability to produce
more products, causing a shift to the right in the supply curve.
• The profitability of other products: if a certain product is seen to be more profitable than the
one currently being produced, producers might shift to producing the more profitable product,
reducing supply of the initial product (causing a shift to the left).
•Other factors: weather, natural disasters, wars etc. can shift the supply curve left.
The market equilibriumprice
market meet.
Disequilibrium price