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The quantity demanded is a point on the demand curve. Yes, the demand curve remains in the same place. However, the point at which it intersects the price cei
by benmccann 14y ago
The quantity demanded is a point on the demand curve. Yes, the demand curve remains in the same place. However, the point at which it intersects the price ceiling is at a lower price and higher quantity than the natural equilibrium. If you're forced to sell something at a lower price, then there will be more people willing to buy it.
- dfc 14y ago"demand curve remains in the same place" = no change in demand
- benmccann 14y agoFalse. I'm talking about the actual quantity being demanded. You're talking about a demand function. They are two different things. I'm talking about a number like 1,500. You're talking about something like a coefficient changing in Q = a - bP. A demand curve shift does result in a change in quantity demanded. However, there are other things that can result in changes in quantity demanded as well (such as a price ceiling or technological progress resulting in lower prices). You already agreed that a price ceiling leads to excess demand. That means demand > supply. Yet, the supply curve did not shift either. Again, this is because demand is a point on the demand curve. You're confusing a graph of demand at each price with demand itself.