File talk:Supply-demand-right-shift-demand.svg

@SilverStar: When demand increases, it is expected that price increase, doesn't it?

In this diagram, demand increment caused price decrements!--Freshman404^Talk 07:58, 8 September 2017 (UTC)

You misread that one completely. The diagram is correct. Quantity 1 and Price 1 shows one equilibrium on the supply curve. Quantity 2 and Price 2 is another equilibrium and situation 2 has both higher supply level and price than offered in situation 1. Which is completely logical since additional customer demand means that more suppliers will open up production but the new arrivals on the market will not be as efficient as existing highly specialised producers. So the new suppliers can only break even at a higher market price. When the market contracts again, the situation will go back to situation 1. 217.116.228.12 06:50, 23 March 2023 (UTC)