Whether the product market or the labor market, what happens to the equilibrium price and quantity for each of the four possibilities: increase in demand, decrease in demand, increase in supply, and decrease in

supply.

Market is a place where buyers & sellers interact with each other to transact goods & services.

Demand is inversely related to price & curve is downward sloping, supply is directly related to price & curve is upward sloping.

Market is at equilibrium when demand & supply are equal, the curves intersect

Increase in demand shifts the demand curve rightwards, which creates excess demand. It creates competition among buyers and increases the equilibrium price and equilibrium quantity

Decrease in demand shifts the demand curve leftwards, which creates excess supply. It creates competition among sellers and decreases the equilibrium price & quantity.

Increase in supply shifts the supply curve rightwards, which creates excess supply. It creates competition among sellers and decreases the equilibrium price, and increases equilibrium quantity.

Decrease in supply shifts the supply curve leftwards, which creates excess demand. It creates competition among buyers and increases the equilibrium price & decreases equilibrium quantity.