Supply and Demand Simulation

There are several factors that may affect the demand and supply curves and shift them to the right or to the left accordingly, with the respective consequences.

If we look at the demand curve first, perhaps the most important factor that causes a shift is the customers' preference or taste. For example, we may consider wheat as a product. The customers decide that wheat is not as healthy as rye and will begin to buy more rye bread than white wheat bread. In this case, the aggregate demand curve for wheat will suffer a shift leftwards. The consequences are that the equilibrium price, on a given supply curve will be lower than previously. Hence, a wheat producer or a company that commercializes wheat will probably lower its prices in order to regain some of the market share that has been lost due to consumer taste. Other...
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