Lab
Shift Supply or Demand
Every situation names a market and changes one thing about buyers or sellers. Ask first whose plans changed, buyers or sellers, then pick that curve and move it the way the change pushes it. Drag the round point to where your curves now cross and check the graph. On paper, name the old and new curves D1 and D2 (or S1 and S2) and mark P1, Q1 and P2, Q2.
Challenges
- Before you move anything, write down whether the change is about buyers or about sellers, and why.
- Group the situations by which way the price and the quantity go. Which curve moved in each group?
- Pick one situation and describe the shortage or surplus at the old price the moment the curve moves, before the price has adjusted.