Decrease/increase in demand decrease/increase in supply Flashcards
1
Q
A decrease in demand
A
Leads to an inward shift of the demand curve from D to D1
2
Q
A decrease in supply
A
Leads to an inward shift of the supply curve from S1 to S2
3
Q
What would happen when there is a decrease in q/s
A
A decrease in equilibrium quantity from QE to Q1 and the equilibrium price remains unchanged at Pe.
4
Q
A new eq. point is established at
A
E2
5
Q
An increase in demeand
A
Leads to an outward shift of the demand curve from D to D1
6
Q
Increase in supply
A
Leads to an outward shift of the supply curve from S1 to S2
7
Q
What happens to eq. quantity in an increase in d/s
A
An increase in eq. quantity from Q1 to QE
8
Q
What happens to eq price
A
Remains unchanged at Pe, a new point is established at E2
