A rightward shift in a demand curve results in a supply curve. A rightward shift in a supply curve results in a demand curve.
These two changes are often lumped together as demand shifts, but they are two vastly different things. The demand curve describes the slope of the curve between the “point of demand” and the “point of supply.” The supply curve describes the slope of the curve between the “point of supply” and the “point of demand.
The demand curve describes the point at which the supply of a good or service changes, while the supply curve describes the point at which the demand of a good or service changes. So let’s say that a car dealership wants to sell me a car. In the past, car dealerships would sell you one car at a time, and then take less cars off the lot when they sold out. They would also sell you another car when they sold out of your first car.
A car dealership has a choice at this point: Sell you a car right now or leave you with a car that doesn’t perform as well as you expect it to. If they sell you a car right now, they are selling you a car that they believe you will be happy with. If they leave you with a car that doesn’t perform as well as you expect it to, then they are selling you a car that they believe you will be disappointed with.
this is the exact opposite of how the demand curve works. It means that as long as you are willing to pay for the car at the price they are willing to charge, you will be happy with the car. Conversely, if they refuse to sell you a car, you are leaving with a car that they believe you will be disappointed with.
You will be happy with if they leave you with a car that doesnt perform as well as you expect it to, and you will be unhappy with if they refuse to sell you a car.
This is a very important concept to understand when it comes to demand and supply curves. What does it mean to be “satisfied” with a product? It means that you are willing to pay for it and want to keep paying forever. For instance, you don’t want to take a loan that isnt affordable.
