PRICE
surplus
PRICE
QUANTITY
Economic Analysis-What happens to P and Q?
Cereal Market
QUANTITY
Elasticity of Demand
Elasticity of Supply
Name
Graded by
Supply and Demand Review Continued
PRICE
shortage
1. Draw Equilibrium
2.
Analyze Change
Supply or Demand
Shifter-
Change: Price of milk increases significantly
QUANTITY
Increase or Decrease
3. New Equilibrium
What Happens to:
Price
O
Quantity
Equilibrium- Qd___Qs
Surplus-Qd Qs
PRICE
Shortage-QdQs
Double Shifts in Demand and Supply
Scenario: Supply decreases AND Demand
decreases.
Rule of Double Shifts:
Inelastic Demand
QUANTITY
Elastic Demand