Answers
Case when supply curve shifts left: When supply curve shifts to left from AS to AS1 while demand curve remains the same. Price rises from P to P1 while output falls from Y to Y1. Equilibrium shifts from point E to E1.
Case when supply curve shifts right: When supply curve shifts to right from S to S1 while demand curve remains the same. Price falls from P to P1 while output rises from Y to Y1. Equilibrium shifts from point A to B.
Case when demand curve shifts right: When demand curve shifts to its right from AD to AD1 while supply curve remains the same, price rises from P to P1 while output rises from Y to Y1.
Equilibrium shifts from point A to B.
Case when demand curve shifts left: When demand curve shifts to its left from AD to AD1 while supply curve remains the same, price falls from P to P1 while output falls from Y to Y1. Equilibrium shifts from point A to B.
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