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Homework answers / question archive / If there is a significant change in demand, the demand curve will shift but the supply curve will not

If there is a significant change in demand, the demand curve will shift but the supply curve will not

Economics

If there is a significant change in demand, the demand curve will shift but the supply curve will not. What happens to the supply curve and why?

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The answer is that nothing will happen to the supply curve's actual equation. A change in the demand curve does not impact the position of the supply curve. However, there will be a change in the equilibrium supply quantity (i.e., a move along the supply curve). This is because any shift of the demand curve will change where the two equations intersect in order to form market equilibrium.