Supply & Demand Lab
Supply & Demand — Market Equilibrium Simulator
Supply and demand is the foundational model of how prices and quantities are determined in competitive markets. This simulator lets you shift supply and demand curves independently — via changes in costs, tastes, or input prices — and immediately see how the equilibrium price and quantity adjust. Elasticity sliders reveal why some markets absorb shocks through large quantity changes while others transmit them as large price swings.
What you can do in this simulation
- Shift the demand curve left or right to simulate changes in consumer income or preferences
- Shift the supply curve to reflect changes in input costs or technology improvements
- Read equilibrium price and quantity at the intersection and observe surplus/shortage dynamics
- Set price elasticity of demand and supply to see how shock impact splits between price and quantity
- Apply a price ceiling or price floor and observe the resulting shortage or surplus
Concepts covered
equilibrium · price elasticity · consumer surplus · producer surplus · price ceiling · market clearing
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