Draw the graph · Micro · Supply and demand
A toy goes viral
Drag a curve sideways, or use its arrows. A curve you do not move is a curve you are saying stays put. Make each shift clear enough that a reader could see it.
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Demand shifts right. Supply stays put.
Tastes are a demand-side factor. When the toy becomes fashionable, buyers want more of it at every price, so demand shifts right. Factory costs and technology are unchanged, so supply stays put. The higher price moves sellers up along their supply curve.
Price rises and quantity rises.
Common mistake. A common error is to shift supply right because 'factories will make more.' They do make more, but only because the higher price pulls them along the supply curve. The trend moved demand.
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Lesson: Shifts in Demand