Demand + Supply Curve

Question 1

When the question state the word MARKET what do you need to have ?

Answer 1

Quantity and price !

Question 2

How do you explain the change in equilibrium?

Answer 2

1. state the Initial equilibrium
2. Identify and explain why the event Shift of demand/supply
3. Identify the shortage / surplus
4. Identify the change in price
   - upward / downward pressure
5. State the new equilibrium

Question 3

An Increase in demand will lead to ?

Answer 3

A shortage.

Price increases, quantity demanded falls.

Question 4

An increase in supply will lead to ?

Answer 4

A surplus.

Price decrease, quantity demanded increases

Question 5

A fall in demand causes ? In price and quantity

Answer 5

[ equilibrium ] Decrease in price and decrease in quantity

[ Initial ] price decrease, quantity demanded increases , quantity supply falls

Question 6

A fall in supply will … ?

Answer 6

Cause an increase in equilibrium price
Cause a decrease in equilibrium quantity
A shortage

how ?
A fall in supply causes an upward pressure in price, quantity demanded decrease, quantity supplied decrease
LEFTWARD SHIFT

Draw the graph

Question 7

An increase in demand and increase in supply causes the equilibrium P&Q to ?

Answer 7

P: indeterminate
Q: increase

Question 8

Decrease in demand and increase in supply causes the equilibrium P&Q to ?

Answer 8

P: decrease
Q: indeterminate

Question 9

An increase in demand and decrease in supply causes the equilibrium P&Q to ?

Answer 9

P: increase
Q: indeterminate

Question 10

Decrease in demand and decrease in supply causes the equilibrium P & Q to ?

Answer 10

P: indeterminate
Q: decrease

Question 11

For both increase/ decrease in supply/demand curve what format to use ?

Answer 11

ISSJUE !
justification is important
To what extend one is greater than the other.
This is so that the P / Q is not indeterminate