{"id":6968,"date":"2017-08-01T16:54:21","date_gmt":"2017-08-01T16:54:21","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/?post_type=chapter&#038;p=6968"},"modified":"2017-08-02T05:02:05","modified_gmt":"2017-08-02T05:02:05","slug":"changes-in-equilibrium-price-and-quantity","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/chapter\/changes-in-equilibrium-price-and-quantity\/","title":{"raw":"Changes in Equilibrium Price and Quantity","rendered":"Changes in Equilibrium Price and Quantity"},"content":{"raw":"<table>\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 400px;vertical-align: top\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01215026\/7586784776_1396978ee3_z-1.jpg\"><img class=\"aligncenter wp-image-6993 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01215026\/7586784776_1396978ee3_z-1.jpg\" alt=\"\" width=\"640\" height=\"427\" \/><\/a><\/td>\r\n<td style=\"width: 350px;vertical-align: top\">\r\n<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\n<ul>\r\n \t<li>Changes in equilibrium price and quantity\r\n<ul>\r\n \t<li>Due to a change in supply<\/li>\r\n \t<li>Due to a change in demand<\/li>\r\n \t<li>Due to a change in supply and demand<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<\/div>\r\n&nbsp;<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<p id=\"fs-idp3165600\">Let\u2019s begin this discussion with a <strong>single economic event<\/strong>. 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, or government policies that affect production. How does this economic event affect equilibrium price and quantity? We will analyze this question using a four-step process.<\/p>\r\n\r\n<table style=\"width: 925px\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 50px;vertical-align: top\">&nbsp;\r\n\r\n1-<\/td>\r\n<td style=\"width: 850px\">&nbsp;\r\n\r\n<span style=\"text-decoration: underline\">Draw a demand and supply model before the economic change took place<\/span>. To establish the model requires four standard pieces of information: The law of demand, which tells us the slope of the demand curve; the law of supply, which gives us the slope of the supply curve; the shift variables for demand; and the shift variables for supply. From this model, <span style=\"text-decoration: underline\">find the initial equilibrium values for price and quantity.<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 75px;vertical-align: top\">&nbsp;\r\n\r\n2-<\/td>\r\n<td style=\"width: 800px;vertical-align: top\">&nbsp;\r\n\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01180229\/eq-change-shrt-term.png\"><img class=\"alignright wp-image-6985\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01180229\/eq-change-shrt-term-300x219.png\" alt=\"\" width=\"400\" height=\"292\" \/><\/a>Decide whether <span style=\"text-decoration: underline\">the economic change being analyzed affects demand or supply.<\/span> In other words, does the event refer to something in the list of demand factors or supply factors?\r\n\r\n&nbsp;<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\">&nbsp;\r\n\r\n3-<\/td>\r\n<td style=\"width: 800px\">&nbsp;\r\n\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01155243\/SD-change-tip1.png\"><img class=\"alignright wp-image-6973\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01155243\/SD-change-tip1-300x179.png\" alt=\"\" width=\"350\" height=\"209\" \/><\/a>Decide whether the effect on demand or supply causes <span style=\"text-decoration: underline\">the curve to shift to the right or to the left<\/span>, and sketch the new demand or supply curve on the diagram. In other words, does the event increase or decrease the amount consumers want to buy or producers want to sell?<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\">&nbsp;\r\n\r\n4-<\/td>\r\n<td style=\"width: 800px\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01172007\/eq-change.png\"><img class=\"alignright wp-image-6980\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01172007\/eq-change-300x126.png\" alt=\"\" width=\"400\" height=\"169\" \/><\/a>\r\n\r\nIdentify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\"><\/td>\r\n<td>&nbsp;\r\n\r\nWhen supply or demand changes, what happens to equilibrium quantity and price:<img class=\"wp-image-6976 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01165333\/SD-basic-changes-300x224.png\" alt=\"\" width=\"400\" height=\"299\" \/><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<p id=\"fs-idp48158496\">Let\u2019s consider one example that involves a shift in supply and one that involves a shift in demand. Then we will consider an example where both supply and demand shift.<\/p>\r\n\r\n<section id=\"fs-idm95664464\">\r\n<h2>Good Weather for Salmon Fishing<\/h2>\r\n<p id=\"fs-idm96936176\">In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California coast. Heavy rains meant higher than normal levels of water in the rivers, which helps the salmon to breed. Slightly cooler ocean temperatures stimulated the growth of plankton, the microscopic organisms at the bottom of the ocean food chain, providing everything in the ocean with a hearty food supply. The ocean stayed calm during fishing season, so commercial fishing operations did not lose many days to bad weather. <span style=\"text-decoration: underline\">How did these climate conditions affect the quantity and price of salmon<\/span>? Fig. 1 illustrates the four-step approach, which is explained below, to work through this problem. Table 1 provides the information to work the problem as well.<\/p>\r\n\r\n<figure id=\"CNX_Econ_C03_010\" class=\"ui-has-child-figcaption\">\r\n<div class=\"title\">Fig. 1-Good Weather for Salmon Fishing: The Four-Step Process<\/div>\r\n<span id=\"fs-idp26858208\"><img src=\"https:\/\/cnx.org\/resources\/527f875b90dba9172836e1dd015481e0c6f64eb4\/CNX_Econ_C03_010.jpg\" alt=\"The graph represents the four-step approach to determining shifts in the new equilibrium price and quantity in response to good weather for salmon fishing.\" \/><\/span>\r\n\r\n<figcaption>Unusually good weather leads to changes in the price and quantity of salmon.<\/figcaption><\/figure>\r\n<table id=\"Table_03_07\" summary=\"The table is called \u201cSalmon Fishing.\u201d It has 4 columns and 7 rows. The four columns are called \u201cPrice per Pound,\u201d \u201cQuantity Supplied in 1999,\u201d \u201cQuantity Supplied in 2000,\u201d and \u201cQuantity Demanded.\u201d Row 1: Price per Pound: $2.00. Quantity Supplied in 1999: 80. Quantity Supplied in 2000: 400. Quantity Demanded: 840. Row 2: Price per Pound: $2.25. Quantity Supplied in 1999: 120. Quantity Supplied in 2000: 480. Quantity Demanded: 680. Row 3: Price per Pound: $2.50. Quantity Supplied in 1999: 160. Quantity Supplied in 2000: 550. Quantity Demanded: 550. Row 4: Price per Pound: $2.75. Quantity Supplied in 1999: 200. Quantity Supplied in 2000: 600. Quantity Demanded: 450. Row 5: Price per Pound: $3.00. Quantity Supplied in 1999: 230. Quantity Supplied in 2000: 640. Quantity Demanded: 350. Row 6: Price per Pound: $3.25. Quantity Supplied in 1999: 250. Quantity Supplied in 2000: 670. Quantity Demanded: 250. Row 7: Price per Pound: $3.50. Quantity Supplied in 1999: 270. Quantity Supplied in 2000: 700. Quantity Demanded: 200.\"><caption>Table 1-Salmon Fishing<\/caption>\r\n<thead>\r\n<tr>\r\n<th scope=\"col\">Price per Pound<\/th>\r\n<th scope=\"col\">Quantity Supplied in 1999<\/th>\r\n<th scope=\"col\">Quantity Supplied in 2000<\/th>\r\n<th scope=\"col\">Quantity Demanded<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>$2.00<\/td>\r\n<td>80<\/td>\r\n<td>400<\/td>\r\n<td>840<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>$2.25<\/td>\r\n<td>120<\/td>\r\n<td>480<\/td>\r\n<td>680<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>$2.50<\/td>\r\n<td>160<\/td>\r\n<td>550<\/td>\r\n<td>550<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>$2.75<\/td>\r\n<td>200<\/td>\r\n<td>600<\/td>\r\n<td>450<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>$3.00<\/td>\r\n<td>230<\/td>\r\n<td>640<\/td>\r\n<td>350<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>$3.25<\/td>\r\n<td>250<\/td>\r\n<td>670<\/td>\r\n<td>250<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>$3.50<\/td>\r\n<td>270<\/td>\r\n<td>700<\/td>\r\n<td>200<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<table style=\"width: 925px\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 50px;vertical-align: top\">&nbsp;\r\n\r\n1-<\/td>\r\n<td style=\"width: 800px;vertical-align: top\">&nbsp;\r\n\r\n<strong>Draw a demand and supply model to illustrate the market for salmon in the year before the good weather conditions began<\/strong>. The demand curve D<sub>0<\/sub><span style=\"font-size: 16px\">\u00a0and the supply curve S<\/span><sub>0<\/sub><span style=\"font-size: 16px\">\u00a0show that the original equilibrium price is $3.25 per pound and the original equilibrium quantity is 250,000 fish. (This price per pound is what commercial buyers pay at the fishing docks; what consumers pay at the grocery is higher.)<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\">&nbsp;\r\n\r\n2-<\/td>\r\n<td>&nbsp;\r\n\r\nDid the economic event affect supply or demand? Good weather is an example of a natural condition that affects <strong>supply<\/strong>. \u00a0<span style=\"color: #000080\"><strong>The demand for salmon is not changing - only supply.<\/strong><\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\">&nbsp;\r\n\r\n3-<\/td>\r\n<td>&nbsp;\r\n\r\nWas the effect on supply an increase or a decrease? Good weather is a change in natural conditions that <strong>increases the quantity supplied at any given price.<\/strong> The <strong>supply curve shifts to the right<\/strong>, moving from the original supply curve S<sub>0<\/sub>\u00a0to the new supply curve S<sub>1<\/sub>, which is shown in both the table and the figure.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\">&nbsp;\r\n\r\n4-<\/td>\r\n<td>&nbsp;\r\n\r\nCompare the new equilibrium price and quantity to the original equilibrium. At the new equilibrium E<sub>1<\/sub>, the <strong>equilibrium price falls<\/strong> from $3.25 to $2.50, but the <strong>equilibrium quantity increases<\/strong> from 250,000 to 550,000 salmon. <span style=\"color: #000080\">Notice that the equilibrium quantity demanded increased, even though the demand curve did not move<\/span>.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p id=\"fs-idm29543312\">In short, good weather conditions increased supply of the California commercial salmon. The result was a higher equilibrium quantity of salmon bought and sold in the market at a lower price.<\/p>\r\n\r\n<\/section><section id=\"fs-idm22656960\">\r\n<h2>Newspapers and the Internet<\/h2>\r\n<p id=\"fs-idp108309040\">According to the\u00a0<span class=\"no-emphasis\">Pew Research Center for People and the Press<\/span>, more and more people, especially younger people, are getting their news from online and digital sources. The majority of U.S. adults now own smartphones or tablets, and most of those Americans say they use them in part to get the news. From 2004 to 2012, the share of Americans who reported getting their news from digital sources increased from 24% to 39%. How has this affected consumption of print news media, and radio and television news? Fig.2 and the text below illustrates using the four-step analysis to answer this question.<\/p>\r\n\r\n<figure id=\"CNX_Econ_C03_011\" class=\"ui-has-child-figcaption\">\r\n<div class=\"title\">Fig. 2-The Print News Market: A Four-Step Analysis<\/div>\r\n<span id=\"fs-idm101585376\"><img src=\"https:\/\/cnx.org\/resources\/2af6205845a78b08bcf38c3ff7d3b7286e2ddfb5\/CNX_Econ_C03_011.jpg\" alt=\"The graph represents the four-step approach to determining changes in equilibrium price and quantity of print news.\" \/><\/span>\r\n\r\n<figcaption>A change in tastes from print news sources to digital sources results in a leftward shift in demand for the former. The result is a decrease in both equilibrium price and quantity.<\/figcaption><\/figure>\r\n<table style=\"width: 900px\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 50px;vertical-align: top\">&nbsp;\r\n\r\n1-<\/td>\r\n<td style=\"width: 800px;vertical-align: top\">&nbsp;\r\n\r\nDevelop a demand and supply model to think about what the market looked like before the event. The demand curve D<sub>0<\/sub>\u00a0and the supply curve S<sub>0<\/sub>\u00a0show the original relationships. In this case, the analysis is performed without specific numbers on the price and quantity axis.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 75px;vertical-align: top\">&nbsp;\r\n\r\n2-<\/td>\r\n<td>&nbsp;\r\n\r\nDid the change described affect supply or demand? A <strong>change in tastes<\/strong>, from traditional news sources (print, radio, and television) to digital sources, caused a <strong>change in demand<\/strong> for the former. \u00a0<span style=\"color: #000080\"><strong>The\u00a0<\/strong><strong>supply\u00a0for salmon is not changing - only\u00a0<\/strong><strong>demand.<\/strong><\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\">&nbsp;\r\n\r\n3-<\/td>\r\n<td>&nbsp;\r\n\r\nWas the effect on demand positive or negative? A shift to digital news sources will tend to mean a <span style=\"text-decoration: underline\">lower quantity demanded of traditional news sources at every given price<\/span>, causing the demand curve for print and other traditional news sources to <strong>shift to the left<\/strong>, from D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"vertical-align: top\">&nbsp;\r\n\r\n4-<\/td>\r\n<td>&nbsp;\r\n\r\nCompare the new equilibrium price and quantity to the original equilibrium price. The<strong> new equilibrium (E<sub>1<\/sub>) occurs at a lower quantity and a lower price than the original equilibrium (E<sub>0<\/sub>)<\/strong>.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<p id=\"fs-idp13978336\">The decline in print news reading predates 2004. Print newspaper circulation peaked in 1973 and has declined since then due to competition from television and radio news. In 1991, 55% of Americans indicated they got their news from print sources, while only 29% did so in 2012. Radio news has followed a similar path in recent decades, with the share of Americans getting their news from radio declining from 54% in 1991 to 33% in 2012. Television news has held its own over the last 15 years, with a market share staying in the mid to upper fifties. What does this suggest for the future, given that two-thirds of Americans under 30 years old say they do not get their news from television at all?<\/p>\r\n\r\n<\/section>\r\n<h2>The Interconnections and Speed of Adjustment in Real Markets<\/h2>\r\n<p id=\"fs-idm116209728\">In the real world, <span style=\"text-decoration: underline\">many factors that affect demand and supply can change all at once<\/span>. For example, the demand for cars might increase because of rising incomes and population, and it might decrease because of rising gasoline prices (a complementary good). Likewise, the supply of cars might increase because of innovative new technologies that reduce the cost of car production, and it might decrease as a result of new government regulations requiring the installation of costly pollution-control technology.<\/p>\r\n<p id=\"fs-idm172967584\">Moreover, rising incomes and population or changes in gasoline prices will affect many markets, not just cars. How can an economist sort out all these interconnected events? The answer lies in the\u00a0<strong><span class=\"no-emphasis\"><em>ceteris paribus<\/em><\/span><\/strong>\u00a0assumption. <strong>Look at how each economic event affects each market, <span style=\"text-decoration: underline\">one event at a time<\/span>, holding all else constant<\/strong>. Then combine the analyses to see the net effect.<\/p>\r\n\r\n<h2>A Combined Example<\/h2>\r\n<p id=\"fs-idm42433440\">The U.S. Postal Service is facing difficult challenges. Compensation for postal workers tends to increase most years due to cost-of-living increases. At the same time, more and more people are using email, text, and other digital message forms such as Facebook and Twitter to communicate with friends and others. What does this suggest about the continued viability of the Postal Service? Fig. 3\u00a0and the text below illustrates using the four-step analysis to answer this question.<\/p>\r\n\r\n<figure id=\"CNX_Econ_C03_029\" class=\"ui-has-child-figcaption\">\r\n<div class=\"title\">Fig. 3-Higher Compensation for Postal Workers: A Four-Step Analysis<\/div>\r\n<span id=\"fs-idm73597216\"><img src=\"https:\/\/cnx.org\/resources\/bf9e973232b5f27e4495b03467082e83508ea6b1\/CNX_Econ_C03_029.jpg\" alt=\"This image has two panels. The one on the left shows the four step analysis of higher compensation for postal workers. The one on the right shows the four-step analysis of a change in tastes away from Postal Services.\" \/><\/span>\r\n\r\n<figcaption>(a) Higher labor compensation causes a leftward shift in the supply curve, a decrease in the equilibrium quantity, and an increase in the equilibrium price. (b) A change in tastes away from Postal Services causes a leftward shift in the demand curve, a decrease in the equilibrium quantity, and a decrease in the equilibrium price.<\/figcaption><\/figure>\r\n<p id=\"fs-idm137013200\">Since this problem involves two disturbances, we need two four-step analyses, the first to analyze the effects of higher compensation for postal workers, the second to analyze the effects of many people switching from \u201csnailmail\u201d to email and other digital messages.<\/p>\r\n\r\n<table style=\"width: 900px\">\r\n<tbody>\r\n<tr style=\"height: 93px\">\r\n<td style=\"width: 50px;vertical-align: top;height: 93px\"><\/td>\r\n<td style=\"width: 800px;vertical-align: top;height: 93px\">&nbsp;\r\n\r\n<span style=\"font-size: 16px\">Fig. 3 (a) shows the shift in supply discussed in the following steps.<\/span><\/td>\r\n<td style=\"width: 50px;vertical-align: top;height: 93px\"><\/td>\r\n<td style=\"width: 425px;vertical-align: top;height: 93px\">&nbsp;\r\n\r\nFig. 3(b) shows the shift in demand discussed in the following steps.<\/td>\r\n<\/tr>\r\n<tr style=\"height: 140px\">\r\n<td style=\"width: 75px;vertical-align: top;height: 140px\">&nbsp;\r\n\r\n1-<\/td>\r\n<td style=\"width: 425px;vertical-align: top;height: 140px\">&nbsp;\r\n\r\nDraw a demand and supply model to illustrate what the market for the U.S. Postal Service looked like before this scenario starts. The demand curve D<sub>0<\/sub>\u00a0and the supply curve S<sub>0<\/sub>\u00a0show the original relationships.<\/td>\r\n<td style=\"width: 50px;vertical-align: top;height: 140px\">&nbsp;\r\n\r\n1-<\/td>\r\n<td style=\"width: 800px;vertical-align: top;height: 140px\">&nbsp;\r\n\r\nDraw a demand and supply model to illustrate what the market for U.S. Postal Services looked like before this scenario starts. The demand curve D<sub>0<\/sub>\u00a0and the supply curve S<sub>0<\/sub>\u00a0show the original relationships. Note that this diagram is independent from the diagram in panel (a).<\/td>\r\n<\/tr>\r\n<tr style=\"height: 118.1px\">\r\n<td style=\"height: 118.1px;vertical-align: top\">&nbsp;\r\n\r\n2-<\/td>\r\n<td style=\"width: 800px;vertical-align: top;height: 118.1px\">&nbsp;\r\n\r\nDid the change described affect supply or demand? Labor compensation is a cost of production. <strong>A change in production costs caused a change in supply for the Postal Service.<\/strong><\/td>\r\n<td style=\"width: 50px;vertical-align: top;height: 118.1px\">&nbsp;\r\n\r\n2-<\/td>\r\n<td style=\"width: 800px;vertical-align: top;height: 118.1px\">&nbsp;\r\n\r\nDid the change described affect supply or demand? A change in tastes away from snailmail toward digital messages will cause a <strong>change in demand<\/strong> for the Postal Service.<\/td>\r\n<\/tr>\r\n<tr style=\"height: 137px\">\r\n<td style=\"height: 137px;vertical-align: top\">&nbsp;\r\n\r\n3-<\/td>\r\n<td style=\"vertical-align: top;height: 137px\">&nbsp;\r\n\r\nWas the effect on supply positive or negative? Higher labor compensation leads to a lower quantity supplied of postal services at every given price, causing the supply curve for postal services to <strong>shift to the left<\/strong>, from S<sub>0<\/sub>\u00a0to S<sub>1<\/sub>.<\/td>\r\n<td style=\"vertical-align: top;height: 137px\">&nbsp;\r\n\r\n3-<\/td>\r\n<td style=\"vertical-align: top;height: 137px\">&nbsp;\r\n\r\nWas the effect on demand positive or negative? A change in tastes away from snailmail toward digital messages causes lower quantity demanded of postal services at every given price, causing the demand curve for postal services to <strong>shift to the left<\/strong>, from D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>.<\/td>\r\n<\/tr>\r\n<tr style=\"height: 125px\">\r\n<td style=\"height: 125px;vertical-align: top\">&nbsp;\r\n\r\n4-<\/td>\r\n<td style=\"vertical-align: top;height: 125px\">&nbsp;\r\n\r\nCompare the new equilibrium price and quantity to the original equilibrium price. The new equilibrium (E<sub>1<\/sub>) occurs at <strong>a lower quantity and a higher price than the original equilibrium (E<sub>0<\/sub>).<\/strong><\/td>\r\n<td style=\"vertical-align: top;height: 125px\">&nbsp;\r\n\r\n4-<\/td>\r\n<td style=\"vertical-align: top;height: 125px\">&nbsp;\r\n\r\nCompare the new equilibrium price and quantity to the original equilibrium price. The new equilibrium (E<sub>2<\/sub>) occurs at <strong>a lower quantity and a lower price than the original equilibrium<\/strong> (E<sub>0<\/sub>).<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<p id=\"fs-idm96669440\">The final step in a scenario where both supply and demand shift is to combine the two individual analyses to determine what happens to the equilibrium quantity and price. Graphically, we superimpose the previous two diagrams one on top of the other, as in Fig. 4.<\/p>\r\n\r\n<figure id=\"CNX_Econ_C03_030\" class=\"ui-has-child-figcaption\">\r\n<div class=\"title\">Fig. 4-Combined Effect of Decreased Demand and Decreased Supply<\/div>\r\n<span id=\"fs-idm32216592\"><img src=\"https:\/\/cnx.org\/resources\/b08fb469dc6057c4d14542d549ceaf645894815d\/CNX_Econ_C03_030.jpg\" alt=\"The graph shows a leftward supply shift as well as a leftward demand shift.\" \/><\/span>\r\n\r\n<figcaption>Supply and demand shifts cause changes in equilibrium price and quantity.<\/figcaption><\/figure>\r\n<p id=\"fs-idm21376496\">Following are the results:<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02021745\/eq-change-complex.png\"><img class=\"aligncenter wp-image-7000\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02021745\/eq-change-complex-300x98.png\" alt=\"\" width=\"500\" height=\"164\" \/><\/a><\/p>\r\n<p id=\"fs-idm31866688\"><span style=\"text-decoration: underline\">Effect on Quantity<\/span>: The effect of higher labor compensation on Postal Services because it raises the cost of production is to decrease the equilibrium quantity. The effect of a change in tastes away from snailmail is to decrease the equilibrium quantity. Since both shifts are to the left, the overall impact is <strong>a decrease in the equilibrium quantity<\/strong> of Postal Services (Q<sub>3<\/sub>). This is easy to see graphically, since Q<sub>3<\/sub>is to the left of Q<sub>0<\/sub>.<\/p>\r\n<p id=\"fs-idm130423904\"><span style=\"text-decoration: underline\">Effect on Price<\/span>: The overall effect on price is more complicated. The effect of higher labor compensation on Postal Services, because it raises the cost of production, is to increase the equilibrium price. The effect of a change in tastes away from snailmail is to decrease the equilibrium price. Since the two effects are in opposite directions, unless we know the magnitudes of the two effects, the<strong> overall effect is unclear<\/strong>. This is not unusual. <span style=\"text-decoration: underline\">When both curves shift, typically we can determine the overall effect on price or on quantity, but not on both<\/span>. In this case, we determined the overall effect on the equilibrium quantity, but not on the equilibrium price. In other cases, it might be the opposite.<\/p>\r\n\r\n<div class=\"textbox shaded\"><section id=\"fs-idm113280976\">\r\n<div id=\"fs-idp22029344\" class=\"note economics clearup ui-has-child-title\"><header>\r\n<div class=\"title\">WHAT IS THE DIFFERENCE BETWEEN SHIFTS OF DEMAND OR SUPPLY VERSUS MOVEMENTS ALONG A DEMAND OR SUPPLY CURVE?<\/div>\r\n<\/header><section>\r\n<p id=\"fs-idm12550704\">One common mistake in applying the demand and supply framework is to confuse the shift of a demand or a supply curve with movement along a demand or supply curve. As an example, consider a problem that asks whether a drought will increase or decrease the equilibrium quantity and equilibrium price of wheat. Lee, a student in an introductory economics class, might reason:<\/p>\r\n<p id=\"fs-idp41575248\">\u201cWell, it is clear that a drought reduces supply, so I will shift back the supply curve, as in the shift from the original supply curve S<sub>0<\/sub>\u00a0to S<sub>1<\/sub>\u00a0shown on the diagram (called Shift 1). So the equilibrium moves from E<sub>0<\/sub>\u00a0to E<sub>1<\/sub>, the\u00a0<span class=\"no-emphasis\">equilibrium quantity<\/span>\u00a0is lower and the equilibrium price is higher. Then, a higher price makes farmers more likely to supply the good, so the supply curve shifts right, as shown by the shift from S<sub>1<\/sub>\u00a0to S<sub>2<\/sub>, on the diagram (shown as Shift 2), so that the equilibrium now moves from E<sub>1<\/sub>\u00a0to E<sub>2<\/sub>. The higher price, however, also reduces demand and so causes demand to shift back, like the shift from the original demand curve, D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>on the diagram (labeled Shift 3), and the equilibrium moves from E<sub>2<\/sub>\u00a0to E<sub>3<\/sub>.\u201d<\/p>\r\n\r\n<figure id=\"CNX_Econ_C03_018\" class=\"ui-has-child-figcaption\">\r\n<div class=\"title\">Shifts of Demand or Supply versus Movements along a Demand or Supply Curve<\/div>\r\n<span id=\"fs-idm214180416\"><img src=\"https:\/\/cnx.org\/resources\/e189339fb748e27525fad65f20541b8b855779c9\/CNX_Econ_C03_018.jpg\" alt=\"The graph shows the difference between shifts of demand and supply, and movement of demand and supply.\" \/><\/span><figcaption><strong><span style=\"color: #800000\">A shift in one curve never causes a shift in the other curve. Rather, a shift in one curve causes a movement along the second curve.<\/span><\/strong><\/figcaption><\/figure>\r\n<p id=\"fs-idm182884000\">At about this point, Lee suspects that this answer is headed down the wrong path. Think about what might be wrong with Lee\u2019s logic, and then read the answer that follows.<\/p>\r\n<p id=\"fs-idm146235232\"><em>Answer:<\/em>\u00a0Lee\u2019s first step is correct: that is, <span style=\"text-decoration: underline\">a drought shifts back the supply curve of wheat and leads to a prediction of a lower equilibrium quantity and a higher equilibrium price<\/span>. This corresponds to a movement along the original demand curve (D<sub>0<\/sub>), from E<sub>0<\/sub>\u00a0to E<sub>1<\/sub>. The rest of Lee\u2019s argument is wrong, because it mixes up shifts in supply with quantity supplied, and shifts in demand with quantity demanded. A higher or lower price never shifts the supply curve, as suggested by the shift in supply from S<sub>1<\/sub>\u00a0to S<sub>2<\/sub>. Instead, a price change leads to a movement along a given supply curve. Similarly, a higher or lower price never shifts a demand curve, as suggested in the shift from D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>. Instead, a price change leads to a movement along a given demand curve. Remember, <strong><span style=\"color: #800000\">a change in the price of a good never causes the demand or supply curve for that good to shift.<\/span><\/strong><\/p>\r\n<p id=\"fs-idm194383488\">Think carefully about the timeline of events: What happens first, what happens next? What is cause, what is effect? If you keep the order right, you are more likely to get the analysis correct.<\/p>\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02050037\/Eq-change-exp-1.png\"><img class=\"wp-image-7003 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02050037\/Eq-change-exp-1-300x224.png\" alt=\"\" width=\"400\" height=\"298\" \/><\/a>\r\n\r\n<\/section><\/div>\r\n<p id=\"fs-idm162362848\">In the four-step analysis of how economic events affect equilibrium price and quantity, the movement from the old to the new equilibrium seems immediate. As a practical matter, however, prices and quantities often do not zoom straight to equilibrium. More realistically, when an economic event causes demand or supply to shift, prices and quantities set off in the general direction of equilibrium. Indeed, even as they are moving toward one new equilibrium, prices are often then pushed by another change in demand or supply toward another equilibrium.<\/p>\r\n\r\n<\/section><section id=\"fs-idm19995296\" class=\"summary\"><\/section><\/div>\r\n&nbsp;","rendered":"<table>\n<tbody>\n<tr>\n<td style=\"width: 400px;vertical-align: top\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01215026\/7586784776_1396978ee3_z-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6993 size-full\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01215026\/7586784776_1396978ee3_z-1.jpg\" alt=\"\" width=\"640\" height=\"427\" \/><\/a><\/td>\n<td style=\"width: 350px;vertical-align: top\">\n<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<ul>\n<li>Changes in equilibrium price and quantity\n<ul>\n<li>Due to a change in supply<\/li>\n<li>Due to a change in demand<\/li>\n<li>Due to a change in supply and demand<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<p>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p id=\"fs-idp3165600\">Let\u2019s begin this discussion with a <strong>single economic event<\/strong>. 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, or government policies that affect production. How does this economic event affect equilibrium price and quantity? We will analyze this question using a four-step process.<\/p>\n<table style=\"width: 925px\">\n<tbody>\n<tr>\n<td style=\"width: 50px;vertical-align: top\">&nbsp;<\/p>\n<p>1-<\/td>\n<td style=\"width: 850px\">&nbsp;<\/p>\n<p><span style=\"text-decoration: underline\">Draw a demand and supply model before the economic change took place<\/span>. To establish the model requires four standard pieces of information: The law of demand, which tells us the slope of the demand curve; the law of supply, which gives us the slope of the supply curve; the shift variables for demand; and the shift variables for supply. From this model, <span style=\"text-decoration: underline\">find the initial equilibrium values for price and quantity.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75px;vertical-align: top\">&nbsp;<\/p>\n<p>2-<\/td>\n<td style=\"width: 800px;vertical-align: top\">&nbsp;<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01180229\/eq-change-shrt-term.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-6985\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01180229\/eq-change-shrt-term-300x219.png\" alt=\"\" width=\"400\" height=\"292\" \/><\/a>Decide whether <span style=\"text-decoration: underline\">the economic change being analyzed affects demand or supply.<\/span> In other words, does the event refer to something in the list of demand factors or supply factors?<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\">&nbsp;<\/p>\n<p>3-<\/td>\n<td style=\"width: 800px\">&nbsp;<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01155243\/SD-change-tip1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-6973\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01155243\/SD-change-tip1-300x179.png\" alt=\"\" width=\"350\" height=\"209\" \/><\/a>Decide whether the effect on demand or supply causes <span style=\"text-decoration: underline\">the curve to shift to the right or to the left<\/span>, and sketch the new demand or supply curve on the diagram. In other words, does the event increase or decrease the amount consumers want to buy or producers want to sell?<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\">&nbsp;<\/p>\n<p>4-<\/td>\n<td style=\"width: 800px\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01172007\/eq-change.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-6980\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01172007\/eq-change-300x126.png\" alt=\"\" width=\"400\" height=\"169\" \/><\/a><\/p>\n<p>Identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\"><\/td>\n<td>&nbsp;<\/p>\n<p>When supply or demand changes, what happens to equilibrium quantity and price:<img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6976 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01165333\/SD-basic-changes-300x224.png\" alt=\"\" width=\"400\" height=\"299\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p id=\"fs-idp48158496\">Let\u2019s consider one example that involves a shift in supply and one that involves a shift in demand. Then we will consider an example where both supply and demand shift.<\/p>\n<section id=\"fs-idm95664464\">\n<h2>Good Weather for Salmon Fishing<\/h2>\n<p id=\"fs-idm96936176\">In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California coast. Heavy rains meant higher than normal levels of water in the rivers, which helps the salmon to breed. Slightly cooler ocean temperatures stimulated the growth of plankton, the microscopic organisms at the bottom of the ocean food chain, providing everything in the ocean with a hearty food supply. The ocean stayed calm during fishing season, so commercial fishing operations did not lose many days to bad weather. <span style=\"text-decoration: underline\">How did these climate conditions affect the quantity and price of salmon<\/span>? Fig. 1 illustrates the four-step approach, which is explained below, to work through this problem. Table 1 provides the information to work the problem as well.<\/p>\n<figure id=\"CNX_Econ_C03_010\" class=\"ui-has-child-figcaption\">\n<div class=\"title\">Fig. 1-Good Weather for Salmon Fishing: The Four-Step Process<\/div>\n<p><span id=\"fs-idp26858208\"><img decoding=\"async\" src=\"https:\/\/cnx.org\/resources\/527f875b90dba9172836e1dd015481e0c6f64eb4\/CNX_Econ_C03_010.jpg\" alt=\"The graph represents the four-step approach to determining shifts in the new equilibrium price and quantity in response to good weather for salmon fishing.\" \/><\/span><figcaption>Unusually good weather leads to changes in the price and quantity of salmon.<\/figcaption><\/figure>\n<table id=\"Table_03_07\" summary=\"The table is called \u201cSalmon Fishing.\u201d It has 4 columns and 7 rows. The four columns are called \u201cPrice per Pound,\u201d \u201cQuantity Supplied in 1999,\u201d \u201cQuantity Supplied in 2000,\u201d and \u201cQuantity Demanded.\u201d Row 1: Price per Pound: $2.00. Quantity Supplied in 1999: 80. Quantity Supplied in 2000: 400. Quantity Demanded: 840. Row 2: Price per Pound: $2.25. Quantity Supplied in 1999: 120. Quantity Supplied in 2000: 480. Quantity Demanded: 680. Row 3: Price per Pound: $2.50. Quantity Supplied in 1999: 160. Quantity Supplied in 2000: 550. Quantity Demanded: 550. Row 4: Price per Pound: $2.75. Quantity Supplied in 1999: 200. Quantity Supplied in 2000: 600. Quantity Demanded: 450. Row 5: Price per Pound: $3.00. Quantity Supplied in 1999: 230. Quantity Supplied in 2000: 640. Quantity Demanded: 350. Row 6: Price per Pound: $3.25. Quantity Supplied in 1999: 250. Quantity Supplied in 2000: 670. Quantity Demanded: 250. Row 7: Price per Pound: $3.50. Quantity Supplied in 1999: 270. Quantity Supplied in 2000: 700. Quantity Demanded: 200.\">\n<caption>Table 1-Salmon Fishing<\/caption>\n<thead>\n<tr>\n<th scope=\"col\">Price per Pound<\/th>\n<th scope=\"col\">Quantity Supplied in 1999<\/th>\n<th scope=\"col\">Quantity Supplied in 2000<\/th>\n<th scope=\"col\">Quantity Demanded<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>$2.00<\/td>\n<td>80<\/td>\n<td>400<\/td>\n<td>840<\/td>\n<\/tr>\n<tr>\n<td>$2.25<\/td>\n<td>120<\/td>\n<td>480<\/td>\n<td>680<\/td>\n<\/tr>\n<tr>\n<td>$2.50<\/td>\n<td>160<\/td>\n<td>550<\/td>\n<td>550<\/td>\n<\/tr>\n<tr>\n<td>$2.75<\/td>\n<td>200<\/td>\n<td>600<\/td>\n<td>450<\/td>\n<\/tr>\n<tr>\n<td>$3.00<\/td>\n<td>230<\/td>\n<td>640<\/td>\n<td>350<\/td>\n<\/tr>\n<tr>\n<td>$3.25<\/td>\n<td>250<\/td>\n<td>670<\/td>\n<td>250<\/td>\n<\/tr>\n<tr>\n<td>$3.50<\/td>\n<td>270<\/td>\n<td>700<\/td>\n<td>200<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"width: 925px\">\n<tbody>\n<tr>\n<td style=\"width: 50px;vertical-align: top\">&nbsp;<\/p>\n<p>1-<\/td>\n<td style=\"width: 800px;vertical-align: top\">&nbsp;<\/p>\n<p><strong>Draw a demand and supply model to illustrate the market for salmon in the year before the good weather conditions began<\/strong>. The demand curve D<sub>0<\/sub><span style=\"font-size: 16px\">\u00a0and the supply curve S<\/span><sub>0<\/sub><span style=\"font-size: 16px\">\u00a0show that the original equilibrium price is $3.25 per pound and the original equilibrium quantity is 250,000 fish. (This price per pound is what commercial buyers pay at the fishing docks; what consumers pay at the grocery is higher.)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\">&nbsp;<\/p>\n<p>2-<\/td>\n<td>&nbsp;<\/p>\n<p>Did the economic event affect supply or demand? Good weather is an example of a natural condition that affects <strong>supply<\/strong>. \u00a0<span style=\"color: #000080\"><strong>The demand for salmon is not changing &#8211; only supply.<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\">&nbsp;<\/p>\n<p>3-<\/td>\n<td>&nbsp;<\/p>\n<p>Was the effect on supply an increase or a decrease? Good weather is a change in natural conditions that <strong>increases the quantity supplied at any given price.<\/strong> The <strong>supply curve shifts to the right<\/strong>, moving from the original supply curve S<sub>0<\/sub>\u00a0to the new supply curve S<sub>1<\/sub>, which is shown in both the table and the figure.<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\">&nbsp;<\/p>\n<p>4-<\/td>\n<td>&nbsp;<\/p>\n<p>Compare the new equilibrium price and quantity to the original equilibrium. At the new equilibrium E<sub>1<\/sub>, the <strong>equilibrium price falls<\/strong> from $3.25 to $2.50, but the <strong>equilibrium quantity increases<\/strong> from 250,000 to 550,000 salmon. <span style=\"color: #000080\">Notice that the equilibrium quantity demanded increased, even though the demand curve did not move<\/span>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p id=\"fs-idm29543312\">In short, good weather conditions increased supply of the California commercial salmon. The result was a higher equilibrium quantity of salmon bought and sold in the market at a lower price.<\/p>\n<\/section>\n<section id=\"fs-idm22656960\">\n<h2>Newspapers and the Internet<\/h2>\n<p id=\"fs-idp108309040\">According to the\u00a0<span class=\"no-emphasis\">Pew Research Center for People and the Press<\/span>, more and more people, especially younger people, are getting their news from online and digital sources. The majority of U.S. adults now own smartphones or tablets, and most of those Americans say they use them in part to get the news. From 2004 to 2012, the share of Americans who reported getting their news from digital sources increased from 24% to 39%. How has this affected consumption of print news media, and radio and television news? Fig.2 and the text below illustrates using the four-step analysis to answer this question.<\/p>\n<figure id=\"CNX_Econ_C03_011\" class=\"ui-has-child-figcaption\">\n<div class=\"title\">Fig. 2-The Print News Market: A Four-Step Analysis<\/div>\n<p><span id=\"fs-idm101585376\"><img decoding=\"async\" src=\"https:\/\/cnx.org\/resources\/2af6205845a78b08bcf38c3ff7d3b7286e2ddfb5\/CNX_Econ_C03_011.jpg\" alt=\"The graph represents the four-step approach to determining changes in equilibrium price and quantity of print news.\" \/><\/span><figcaption>A change in tastes from print news sources to digital sources results in a leftward shift in demand for the former. The result is a decrease in both equilibrium price and quantity.<\/figcaption><\/figure>\n<table style=\"width: 900px\">\n<tbody>\n<tr>\n<td style=\"width: 50px;vertical-align: top\">&nbsp;<\/p>\n<p>1-<\/td>\n<td style=\"width: 800px;vertical-align: top\">&nbsp;<\/p>\n<p>Develop a demand and supply model to think about what the market looked like before the event. The demand curve D<sub>0<\/sub>\u00a0and the supply curve S<sub>0<\/sub>\u00a0show the original relationships. In this case, the analysis is performed without specific numbers on the price and quantity axis.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 75px;vertical-align: top\">&nbsp;<\/p>\n<p>2-<\/td>\n<td>&nbsp;<\/p>\n<p>Did the change described affect supply or demand? A <strong>change in tastes<\/strong>, from traditional news sources (print, radio, and television) to digital sources, caused a <strong>change in demand<\/strong> for the former. \u00a0<span style=\"color: #000080\"><strong>The\u00a0<\/strong><strong>supply\u00a0for salmon is not changing &#8211; only\u00a0<\/strong><strong>demand.<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\">&nbsp;<\/p>\n<p>3-<\/td>\n<td>&nbsp;<\/p>\n<p>Was the effect on demand positive or negative? A shift to digital news sources will tend to mean a <span style=\"text-decoration: underline\">lower quantity demanded of traditional news sources at every given price<\/span>, causing the demand curve for print and other traditional news sources to <strong>shift to the left<\/strong>, from D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>.<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align: top\">&nbsp;<\/p>\n<p>4-<\/td>\n<td>&nbsp;<\/p>\n<p>Compare the new equilibrium price and quantity to the original equilibrium price. The<strong> new equilibrium (E<sub>1<\/sub>) occurs at a lower quantity and a lower price than the original equilibrium (E<sub>0<\/sub>)<\/strong>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p id=\"fs-idp13978336\">The decline in print news reading predates 2004. Print newspaper circulation peaked in 1973 and has declined since then due to competition from television and radio news. In 1991, 55% of Americans indicated they got their news from print sources, while only 29% did so in 2012. Radio news has followed a similar path in recent decades, with the share of Americans getting their news from radio declining from 54% in 1991 to 33% in 2012. Television news has held its own over the last 15 years, with a market share staying in the mid to upper fifties. What does this suggest for the future, given that two-thirds of Americans under 30 years old say they do not get their news from television at all?<\/p>\n<\/section>\n<h2>The Interconnections and Speed of Adjustment in Real Markets<\/h2>\n<p id=\"fs-idm116209728\">In the real world, <span style=\"text-decoration: underline\">many factors that affect demand and supply can change all at once<\/span>. For example, the demand for cars might increase because of rising incomes and population, and it might decrease because of rising gasoline prices (a complementary good). Likewise, the supply of cars might increase because of innovative new technologies that reduce the cost of car production, and it might decrease as a result of new government regulations requiring the installation of costly pollution-control technology.<\/p>\n<p id=\"fs-idm172967584\">Moreover, rising incomes and population or changes in gasoline prices will affect many markets, not just cars. How can an economist sort out all these interconnected events? The answer lies in the\u00a0<strong><span class=\"no-emphasis\"><em>ceteris paribus<\/em><\/span><\/strong>\u00a0assumption. <strong>Look at how each economic event affects each market, <span style=\"text-decoration: underline\">one event at a time<\/span>, holding all else constant<\/strong>. Then combine the analyses to see the net effect.<\/p>\n<h2>A Combined Example<\/h2>\n<p id=\"fs-idm42433440\">The U.S. Postal Service is facing difficult challenges. Compensation for postal workers tends to increase most years due to cost-of-living increases. At the same time, more and more people are using email, text, and other digital message forms such as Facebook and Twitter to communicate with friends and others. What does this suggest about the continued viability of the Postal Service? Fig. 3\u00a0and the text below illustrates using the four-step analysis to answer this question.<\/p>\n<figure id=\"CNX_Econ_C03_029\" class=\"ui-has-child-figcaption\">\n<div class=\"title\">Fig. 3-Higher Compensation for Postal Workers: A Four-Step Analysis<\/div>\n<p><span id=\"fs-idm73597216\"><img decoding=\"async\" src=\"https:\/\/cnx.org\/resources\/bf9e973232b5f27e4495b03467082e83508ea6b1\/CNX_Econ_C03_029.jpg\" alt=\"This image has two panels. The one on the left shows the four step analysis of higher compensation for postal workers. The one on the right shows the four-step analysis of a change in tastes away from Postal Services.\" \/><\/span><figcaption>(a) Higher labor compensation causes a leftward shift in the supply curve, a decrease in the equilibrium quantity, and an increase in the equilibrium price. (b) A change in tastes away from Postal Services causes a leftward shift in the demand curve, a decrease in the equilibrium quantity, and a decrease in the equilibrium price.<\/figcaption><\/figure>\n<p id=\"fs-idm137013200\">Since this problem involves two disturbances, we need two four-step analyses, the first to analyze the effects of higher compensation for postal workers, the second to analyze the effects of many people switching from \u201csnailmail\u201d to email and other digital messages.<\/p>\n<table style=\"width: 900px\">\n<tbody>\n<tr style=\"height: 93px\">\n<td style=\"width: 50px;vertical-align: top;height: 93px\"><\/td>\n<td style=\"width: 800px;vertical-align: top;height: 93px\">&nbsp;<\/p>\n<p><span style=\"font-size: 16px\">Fig. 3 (a) shows the shift in supply discussed in the following steps.<\/span><\/td>\n<td style=\"width: 50px;vertical-align: top;height: 93px\"><\/td>\n<td style=\"width: 425px;vertical-align: top;height: 93px\">&nbsp;<\/p>\n<p>Fig. 3(b) shows the shift in demand discussed in the following steps.<\/td>\n<\/tr>\n<tr style=\"height: 140px\">\n<td style=\"width: 75px;vertical-align: top;height: 140px\">&nbsp;<\/p>\n<p>1-<\/td>\n<td style=\"width: 425px;vertical-align: top;height: 140px\">&nbsp;<\/p>\n<p>Draw a demand and supply model to illustrate what the market for the U.S. Postal Service looked like before this scenario starts. The demand curve D<sub>0<\/sub>\u00a0and the supply curve S<sub>0<\/sub>\u00a0show the original relationships.<\/td>\n<td style=\"width: 50px;vertical-align: top;height: 140px\">&nbsp;<\/p>\n<p>1-<\/td>\n<td style=\"width: 800px;vertical-align: top;height: 140px\">&nbsp;<\/p>\n<p>Draw a demand and supply model to illustrate what the market for U.S. Postal Services looked like before this scenario starts. The demand curve D<sub>0<\/sub>\u00a0and the supply curve S<sub>0<\/sub>\u00a0show the original relationships. Note that this diagram is independent from the diagram in panel (a).<\/td>\n<\/tr>\n<tr style=\"height: 118.1px\">\n<td style=\"height: 118.1px;vertical-align: top\">&nbsp;<\/p>\n<p>2-<\/td>\n<td style=\"width: 800px;vertical-align: top;height: 118.1px\">&nbsp;<\/p>\n<p>Did the change described affect supply or demand? Labor compensation is a cost of production. <strong>A change in production costs caused a change in supply for the Postal Service.<\/strong><\/td>\n<td style=\"width: 50px;vertical-align: top;height: 118.1px\">&nbsp;<\/p>\n<p>2-<\/td>\n<td style=\"width: 800px;vertical-align: top;height: 118.1px\">&nbsp;<\/p>\n<p>Did the change described affect supply or demand? A change in tastes away from snailmail toward digital messages will cause a <strong>change in demand<\/strong> for the Postal Service.<\/td>\n<\/tr>\n<tr style=\"height: 137px\">\n<td style=\"height: 137px;vertical-align: top\">&nbsp;<\/p>\n<p>3-<\/td>\n<td style=\"vertical-align: top;height: 137px\">&nbsp;<\/p>\n<p>Was the effect on supply positive or negative? Higher labor compensation leads to a lower quantity supplied of postal services at every given price, causing the supply curve for postal services to <strong>shift to the left<\/strong>, from S<sub>0<\/sub>\u00a0to S<sub>1<\/sub>.<\/td>\n<td style=\"vertical-align: top;height: 137px\">&nbsp;<\/p>\n<p>3-<\/td>\n<td style=\"vertical-align: top;height: 137px\">&nbsp;<\/p>\n<p>Was the effect on demand positive or negative? A change in tastes away from snailmail toward digital messages causes lower quantity demanded of postal services at every given price, causing the demand curve for postal services to <strong>shift to the left<\/strong>, from D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>.<\/td>\n<\/tr>\n<tr style=\"height: 125px\">\n<td style=\"height: 125px;vertical-align: top\">&nbsp;<\/p>\n<p>4-<\/td>\n<td style=\"vertical-align: top;height: 125px\">&nbsp;<\/p>\n<p>Compare the new equilibrium price and quantity to the original equilibrium price. The new equilibrium (E<sub>1<\/sub>) occurs at <strong>a lower quantity and a higher price than the original equilibrium (E<sub>0<\/sub>).<\/strong><\/td>\n<td style=\"vertical-align: top;height: 125px\">&nbsp;<\/p>\n<p>4-<\/td>\n<td style=\"vertical-align: top;height: 125px\">&nbsp;<\/p>\n<p>Compare the new equilibrium price and quantity to the original equilibrium price. The new equilibrium (E<sub>2<\/sub>) occurs at <strong>a lower quantity and a lower price than the original equilibrium<\/strong> (E<sub>0<\/sub>).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p id=\"fs-idm96669440\">The final step in a scenario where both supply and demand shift is to combine the two individual analyses to determine what happens to the equilibrium quantity and price. Graphically, we superimpose the previous two diagrams one on top of the other, as in Fig. 4.<\/p>\n<figure id=\"CNX_Econ_C03_030\" class=\"ui-has-child-figcaption\">\n<div class=\"title\">Fig. 4-Combined Effect of Decreased Demand and Decreased Supply<\/div>\n<p><span id=\"fs-idm32216592\"><img decoding=\"async\" src=\"https:\/\/cnx.org\/resources\/b08fb469dc6057c4d14542d549ceaf645894815d\/CNX_Econ_C03_030.jpg\" alt=\"The graph shows a leftward supply shift as well as a leftward demand shift.\" \/><\/span><figcaption>Supply and demand shifts cause changes in equilibrium price and quantity.<\/figcaption><\/figure>\n<p id=\"fs-idm21376496\">Following are the results:<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02021745\/eq-change-complex.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7000\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02021745\/eq-change-complex-300x98.png\" alt=\"\" width=\"500\" height=\"164\" \/><\/a><\/p>\n<p id=\"fs-idm31866688\"><span style=\"text-decoration: underline\">Effect on Quantity<\/span>: The effect of higher labor compensation on Postal Services because it raises the cost of production is to decrease the equilibrium quantity. The effect of a change in tastes away from snailmail is to decrease the equilibrium quantity. Since both shifts are to the left, the overall impact is <strong>a decrease in the equilibrium quantity<\/strong> of Postal Services (Q<sub>3<\/sub>). This is easy to see graphically, since Q<sub>3<\/sub>is to the left of Q<sub>0<\/sub>.<\/p>\n<p id=\"fs-idm130423904\"><span style=\"text-decoration: underline\">Effect on Price<\/span>: The overall effect on price is more complicated. The effect of higher labor compensation on Postal Services, because it raises the cost of production, is to increase the equilibrium price. The effect of a change in tastes away from snailmail is to decrease the equilibrium price. Since the two effects are in opposite directions, unless we know the magnitudes of the two effects, the<strong> overall effect is unclear<\/strong>. This is not unusual. <span style=\"text-decoration: underline\">When both curves shift, typically we can determine the overall effect on price or on quantity, but not on both<\/span>. In this case, we determined the overall effect on the equilibrium quantity, but not on the equilibrium price. In other cases, it might be the opposite.<\/p>\n<div class=\"textbox shaded\">\n<section id=\"fs-idm113280976\">\n<div id=\"fs-idp22029344\" class=\"note economics clearup ui-has-child-title\">\n<header>\n<div class=\"title\">WHAT IS THE DIFFERENCE BETWEEN SHIFTS OF DEMAND OR SUPPLY VERSUS MOVEMENTS ALONG A DEMAND OR SUPPLY CURVE?<\/div>\n<\/header>\n<section>\n<p id=\"fs-idm12550704\">One common mistake in applying the demand and supply framework is to confuse the shift of a demand or a supply curve with movement along a demand or supply curve. As an example, consider a problem that asks whether a drought will increase or decrease the equilibrium quantity and equilibrium price of wheat. Lee, a student in an introductory economics class, might reason:<\/p>\n<p id=\"fs-idp41575248\">\u201cWell, it is clear that a drought reduces supply, so I will shift back the supply curve, as in the shift from the original supply curve S<sub>0<\/sub>\u00a0to S<sub>1<\/sub>\u00a0shown on the diagram (called Shift 1). So the equilibrium moves from E<sub>0<\/sub>\u00a0to E<sub>1<\/sub>, the\u00a0<span class=\"no-emphasis\">equilibrium quantity<\/span>\u00a0is lower and the equilibrium price is higher. Then, a higher price makes farmers more likely to supply the good, so the supply curve shifts right, as shown by the shift from S<sub>1<\/sub>\u00a0to S<sub>2<\/sub>, on the diagram (shown as Shift 2), so that the equilibrium now moves from E<sub>1<\/sub>\u00a0to E<sub>2<\/sub>. The higher price, however, also reduces demand and so causes demand to shift back, like the shift from the original demand curve, D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>on the diagram (labeled Shift 3), and the equilibrium moves from E<sub>2<\/sub>\u00a0to E<sub>3<\/sub>.\u201d<\/p>\n<figure id=\"CNX_Econ_C03_018\" class=\"ui-has-child-figcaption\">\n<div class=\"title\">Shifts of Demand or Supply versus Movements along a Demand or Supply Curve<\/div>\n<p><span id=\"fs-idm214180416\"><img decoding=\"async\" src=\"https:\/\/cnx.org\/resources\/e189339fb748e27525fad65f20541b8b855779c9\/CNX_Econ_C03_018.jpg\" alt=\"The graph shows the difference between shifts of demand and supply, and movement of demand and supply.\" \/><\/span><figcaption><strong><span style=\"color: #800000\">A shift in one curve never causes a shift in the other curve. Rather, a shift in one curve causes a movement along the second curve.<\/span><\/strong><\/figcaption><\/figure>\n<p id=\"fs-idm182884000\">At about this point, Lee suspects that this answer is headed down the wrong path. Think about what might be wrong with Lee\u2019s logic, and then read the answer that follows.<\/p>\n<p id=\"fs-idm146235232\"><em>Answer:<\/em>\u00a0Lee\u2019s first step is correct: that is, <span style=\"text-decoration: underline\">a drought shifts back the supply curve of wheat and leads to a prediction of a lower equilibrium quantity and a higher equilibrium price<\/span>. This corresponds to a movement along the original demand curve (D<sub>0<\/sub>), from E<sub>0<\/sub>\u00a0to E<sub>1<\/sub>. The rest of Lee\u2019s argument is wrong, because it mixes up shifts in supply with quantity supplied, and shifts in demand with quantity demanded. A higher or lower price never shifts the supply curve, as suggested by the shift in supply from S<sub>1<\/sub>\u00a0to S<sub>2<\/sub>. Instead, a price change leads to a movement along a given supply curve. Similarly, a higher or lower price never shifts a demand curve, as suggested in the shift from D<sub>0<\/sub>\u00a0to D<sub>1<\/sub>. Instead, a price change leads to a movement along a given demand curve. Remember, <strong><span style=\"color: #800000\">a change in the price of a good never causes the demand or supply curve for that good to shift.<\/span><\/strong><\/p>\n<p id=\"fs-idm194383488\">Think carefully about the timeline of events: What happens first, what happens next? What is cause, what is effect? If you keep the order right, you are more likely to get the analysis correct.<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02050037\/Eq-change-exp-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-7003 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02050037\/Eq-change-exp-1-300x224.png\" alt=\"\" width=\"400\" height=\"298\" \/><\/a><\/p>\n<\/section>\n<\/div>\n<p id=\"fs-idm162362848\">In the four-step analysis of how economic events affect equilibrium price and quantity, the movement from the old to the new equilibrium seems immediate. As a practical matter, however, prices and quantities often do not zoom straight to equilibrium. More realistically, when an economic event causes demand or supply to shift, prices and quantities set off in the general direction of equilibrium. Indeed, even as they are moving toward one new equilibrium, prices are often then pushed by another change in demand or supply toward another equilibrium.<\/p>\n<\/section>\n<section id=\"fs-idm19995296\" class=\"summary\"><\/section>\n<\/div>\n<p>&nbsp;<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-6968\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Equilibrium change slide. <strong>Authored by<\/strong>: S. Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01172007\/eq-change.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01172007\/eq-change.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Basic changes in equilibrium slide. <strong>Authored by<\/strong>: S. Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01165333\/SD-basic-changes.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01165333\/SD-basic-changes.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Shifts in supply\/demand slide. <strong>Authored by<\/strong>: S.Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01155243\/SD-change-tip1.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01155243\/SD-change-tip1.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>short term analysis slide. <strong>Authored by<\/strong>: S.Haci. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01180229\/eq-change-shrt-term.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/01180229\/eq-change-shrt-term.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Simultaneous changes slide. <strong>Authored by<\/strong>: S.Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02021745\/eq-change-complex.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02021745\/eq-change-complex.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Change in equilibrium analysis. <strong>Authored by<\/strong>: S.Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02050037\/Eq-change-exp-1.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/08\/02050037\/Eq-change-exp-1.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Principles of Economics - chapter 3. <strong>Authored by<\/strong>: Openstax. <strong>Provided by<\/strong>: Rice University. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/cnx.org\/contents\/aWGdK2jw@11.346:Ye0K384u@10\/Changes-in-Equilibrium-Price-a\">https:\/\/cnx.org\/contents\/aWGdK2jw@11.346:Ye0K384u@10\/Changes-in-Equilibrium-Price-a<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>York Market photo. <strong>Authored by<\/strong>: William Murphy. <strong>Provided by<\/strong>: flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/infomatique\/7586784776\/in\/photolist-cyqfN5-WYufgy-qsw4tp-5mEtvZ-ouVQFC-4k6M51-dt8FJe-WGvaQ2-jyLogT-pbB4Yd-SNZLPW-WTnTas-72uaqF-dy3Bux-8vpoEE-dHH8ui-4bN79f-cwiuhf-SSzN7P-SYMyqG-e9XLkL-72wtEQ-61Wwyv-brAnz1-sQ4pSN-SFv9cS-Sai3PU-SkpXJ5-SkpXW9-oouoKB-SkpXNy-SFv99f-4HPMRS-5LDsTX-UHstp5-s7M3Dn-SkpZju-RA6Cky-4Cx8Rv-oW3LQq-SRG3rf-n2n8A8-2RZoXU-oc85mX-VYjxvW-oW9wQS-SVgdeB-SRG43L-iKrUr5-kmTxiv\">https:\/\/www.flickr.com\/photos\/infomatique\/7586784776\/in\/photolist-cyqfN5-WYufgy-qsw4tp-5mEtvZ-ouVQFC-4k6M51-dt8FJe-WGvaQ2-jyLogT-pbB4Yd-SNZLPW-WTnTas-72uaqF-dy3Bux-8vpoEE-dHH8ui-4bN79f-cwiuhf-SSzN7P-SYMyqG-e9XLkL-72wtEQ-61Wwyv-brAnz1-sQ4pSN-SFv9cS-Sai3PU-SkpXJ5-SkpXW9-oouoKB-SkpXNy-SFv99f-4HPMRS-5LDsTX-UHstp5-s7M3Dn-SkpZju-RA6Cky-4Cx8Rv-oW3LQq-SRG3rf-n2n8A8-2RZoXU-oc85mX-VYjxvW-oW9wQS-SVgdeB-SRG43L-iKrUr5-kmTxiv<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":18767,"menu_order":4,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Equilibrium change slide\",\"author\":\"S. 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