Lab
Draw the Supply and Demand Graph
Each situation names one market and changes one curve first. Choose demand or supply, drag it the way the situation pushes it, then drag the round point to the new equilibrium and check your graph. Label the curve that moved D1 and D2 (or S1 and S2), and the equilibrium P1, Q1 and P2, Q2.
Challenges
- Before you check each graph, say which way the equilibrium price and quantity will move.
- Sort the situations into those where price and quantity move the same way and those where they move in opposite directions. Which curve moved in each group, and why?
- For one situation, describe the shortage or surplus that exists at the old price right after the shift, before the price adjusts.