Question

Research and provide the link for...any product or service that may have been introduced in the last year that would demonstrate how a demand or supply curve could move to the right or the left?

Answer 1

Demand curve shifts to the right when income of the people increases, increase in price of the substitute good or fall in price of the complimentary good.

Supply curve shifts the right when there is a technological advancement, if the seller feels that price is going to increase in future, increase in price of other similar goods etc.

Shifts towards left mean increase in quantity demanded and quantity supplied. Where as shift towards left means fall in quantity demanded and quantity supplied.

For example consider the 4G revolution in India. Jio was the first telecom company in India to roll out 4G services in the country. It was also interesting to note that despite Jio being a new entrant in the telecom sector they were able cause huge disruption in the industry with in a short period of time. When Jio rolled out its services, in the early month 4G services where provided free of cost. People could enjoy 2 gb of data for free. This propmpted million of Indians espacially the millennials to switch from 3G to 4G technology.

Closely related to telecom sector is the smart phone industry. With Jio rolling out 4G tech, the demand for 4G enabled smart sky rocketed. People began to switch 3G enabled phones to 4G enabled phones. Smart phones makers began to import in more shipments of phones to meet the demand. I.e along with the increase in demand for 4G smart phones its supply also increased.

In the above figure the demand for 4G smart phones are taken on the x axis and price of the same are taken on the y axis. Before the Jio launched their 4G services, the demand and price of 4G phones were P0 and Q0. The initial equilibrium was at point E0 where the demand cuve D0D0 intersected the supply curve S0S0. After the launch of Jio, the demand for 4G smart phones increased which made the demand curve to shift right to become D1D1. The supply of the same increased which made the supply curve to shift to right to become S1S1. The new demand and supply cuve intersect at point E1 to establish new equilibrium. At E1 the price and quantity demanded and supplied are P1 and Q1 respectively. As seen in the figure, both price and quantity has increased at new equilibrium.