1.2 Supply and Demand diagrams

Question 1

Draw the basic S&D diagram for 2 marks.

Answer 1

•Should have axis labelled (price ,quality)
• Lines labelled (supply,demand)
•Equilibrium labelled
•Dashed lines from equilibrium
•Labelled each dashed line( P1, Q1)

Question 2

What is the acronym for demand?

Answer 2

Tripes

Question 3

What does tripes stand for?
(Demand)

Answer 3

T-Tastes and preferences
R-Related goods
I-Income
P-Population
E-External shocks
S-Seasonality

Question 4

What is the acronym for Supply?

Answer 4

Tipse

Question 5

What does Tipse stand for?
(Supply)

Answer 5

T-Technology
I-Indirect tax
P-Production costs
S-Subsides
E-External shocks

Question 6

When do you move the demand to the left?

Answer 6

When there’s a decrease in demand

Question 7

When do you move the demand line to the right?

Answer 7

When there’s an increase in demand

Question 8

When do you move the supply line to the left?

Answer 8

When there’s a decrease in supply

Question 9

When do you move the supply line to the right?

Answer 9

When there’s an increase in supply