Example
The demand for fish in a local farmer’s market is shown in the following table:
| Price for Kg | Quantity Demanded(1) | Quantity Supplied | Quantity Demanded (2) |
| 12 | 180 | 420 | 260 |
| 11 | 210 | 370 | 290 |
| 10 | 240 | 320 | 320 |
| 9 | 270 | 270 | 350 |
| 8 | 300 | 220 | 380 |
- The original equilibrium price is 9.00 euros per kg.
- If market demand rises by 80 kg at each and at every price level, i.e., from 180 to 260 at 12 kg price point, etc. etc. , the new equilibrium price will be 10.00 euros with 320 kg being bought and sold.
- There is an outward shift in the market demand curve (ceteris paribus) with no changes in supply conditions leads to a rise in the equilibrium price and an expansion in market supply.
Ceteris paribus
- This term is used in economics to show cause and effect relationships through assuming that nothing else has changed (conditions).
