|
Price
|
Q Demand
|
Q Supplied
|
State of Market D-S
|
Tendency for Price change (Decrease/Increase/Same)
|
|
90
|
45
|
115
|
|
|
|
85
|
65
|
100
|
|
|
|
80
|
85
|
85
|
|
|
|
75
|
105
|
70
|
|
|
|
70
|
125
|
55
|
|
|
a. Create a graph that shows Price on the Y-axis and Q demanded and Q Demanded and Q supplied on the X-axis.
b. What is the difference between a movement along and shift of the demand curve? Show the affect on the equilibrium price and quantity that result from: (1) an increase in demand, (2) an increase in supply, and (3) an increase in both supply and demand. Provide an example of the role of supply and demand in decision-making.