Figure 2.10 Size of Equilibrium Price and Quantity Changes, and the Slopes of the Demand and Supply Curves

(a) With a relatively flat supply curve, a shift in demand from D₁ to D₂ will result in a relatively small increase in equilibrium price ΔP_a and a relatively large increase in equilibrium quantity ΔQ_a.(b) With a relatively steep supply curve, a shift in demand from D₁ to D₂ will result in a relatively large increase in equilibrium price ΔP_b and a relatively small increase in equilibrium quantity ΔQ_b.(c) With a relatively flat demand curve, a shift in supply from S₁ to S₂ will result in a relatively small decrease in equilibrium price ΔP_c and a relatively large increase in equilibrium quantity ΔQ_c.(d) With a relatively steep demand curve, a shift in supply from S₁ to S₂ will result in a relatively large decrease in equilibrium price ΔP_d and a relatively small increase in equilibrium quantity ΔQ_d.