Shift in Demand and Supply:
The market equilibrium achieved above is temporary. It can’t be hold for a long period. It is since demand and supply conditions keep modifying frequently. Such modifications take place due to many variables other than price. Such changes take place independently of price. We will see the causes and nature of these changes which persuade demand and supply.
We know that price is the major factor affecting demand and supply maintaining ‘other things’ constant. What are ‘other things’?
Let’s assume, those ‘other things’ are not constant however changing, what will ensue to demand and supply? Note that any modifications in such determinants of demand and supply will shift the demand and supply curve. Such shifts will too bring new equilibrium.
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