That's because supply changes tend to lag compared to changes ... Aggregate supply and demand are represented separately by their curves. Aggregate supply is a response to increasing prices ...

The point at which the two curves intersect represents the market-clearing price—the price at which demand and supply are the same (see chart). Prices can change for many reasons (technology, consumer ...

And so, the supply curve does not change, and the original price increase from the demand shock stays. Supply cannot decrease, so there is no countervailing effect from supply, and prices stay low.

The reverse is true for graphing the supply curve: Suppliers provide a higher ... and even weather patterns. Price changes of related goods or services may also affect demand.