When the curve shifts up, the equilibrium price may increase. Although a single business cannot affect the shape of these curves, the combined actions of businesses and consumers affect the supply ...

Elasticity is an economic concept that demonstrates the effect of a product price change on demand. For example, a product such as milk is an inelastic product, since a price change will not ...

In the long run, supply should stabilize and demand should continue shifting outward, resulting in steadily increasing prices for and quantities of new houses.

The supply of houses can shift quickly, because people can decide to sell their houses (say, retirees planning to move to apartments in the city can move that decision forward).