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Exhibit: Simultaneous Shifts in Demand and Supply
-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves. In this market for a normal good, the shift in the demand curve may have been a result of:

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Exhibit: Simultaneous Shifts in Demand and Supply

-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves. In this market for a normal good, the shift in the demand curve may have been a result of:

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The shift in the demand curve can be explained by consumers' expectation of the price to go up. This would cause them to increase their demand for the good now, which shifts the demand curve to the right. The shift in the supply curve may also be a result of some other factors.

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