An increase in the price of DVD rentals does not shift the supply curve at all; rather, it corresponds to a movement upward to the right along the supply curve At a higher price of P2 instead of P1, a greater quantity of DVD rentals, say Q2 instead of Q1, will be supplied [Panel (b)] An increase in the number of stores renting DVDs will cause the supply curve to shift to the right [Panel (c)] Figure 3.13 3.3 Demand, Supply, and Equilibrium LEARNING OBJECTIVES Use demand and supply to explain how equilibrium price and quantity are determined in a market Understand the concepts of surpluses and shortages and the pressures on price they generate Explain the impact of a change in demand or supply on equilibrium price and quantity Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 151