Movement of Demand and Supply Curves

1. Movement of Demand and Supply Curves

2. An Increase in Demand Price S p1 p D D1 0 q q2 q1 Quantity

3. An Increase in Demand • Leads to • Demand curve SHIFTING outwards (D-D1) • Price increases / Quantity increases (P1q1) • Supply increases along the curve due to Increased Price

4. A Decrease in Demand Price S p p1 D D1 0 q1 q2 q Quantity

5. A Decrease in Demand • Leads to • Demand curve SHIFTING inwards (D-D1) • Price decreases / Quantity ____(P1Q1) • Supply _______ along the curve due to decreased Price

6. An Increase in Supply Price S S1 p p1 D 0 q q2 q1 Quantity

7. Increase in Supply • Leads to – Use diagram to complete • 1 shift to the right of Supply curve • 2. price _______ Quaintly (D/S) _____ • 3. With lower price demand ___ along the curve

8. A Decrease in Supply Price S1 S p1 p D 0 q1 q2 q Quantity

9. Leads to – • 1 shift to the LEFT of Supply curve • 2. price _______ Quaintly (D/S) _____ • 3. With higher price demand ___ along the curve

10. Draw & Explain the Following… • The Market for Gucci, following an increase in Average income. • The Market for Sun Block, once Monsoon has started. • The Market for Petrol, following an increase in the price of Crude Oil. • The Market for Solar Panels, following the announcement of a Fixed Subsidy.

12. Your Turn… • In groups, think of examples of what could move either a demand of supply curve. • Test each other using the WBs.