KG596-151: Foundations of Economics
Wang Mingzhu
Week 1 Assignment
July 29, 2015
Lesson 2 Supply and Demand Student Assignment Questions
1. Illustrate with diagrams what will happen to equilibrium price and equilibrium quantity in the following cases:
Code
condition
diagrams
result
1
Demand rises and supply is constant
D1 presents demand rises, P2 and Q2 present the price and quantity after the demand changes. Both equilibrium price and equilibrium quantity increase.
2
Demand falls and supply is constant
D1 presents demand falls, P2 and Q2 present the price and quantity after the demand changes. Both equilibrium price and equilibrium quantity decrease.
3
Demand is constant and supply rises
S1 presents supply increases, P2 and Q2 present the price and quantity after the supply changes. Equilibrium price decreases, and equilibrium quantity increases.
4
Demand is constant and supply falls
S1 presents supply increases, P2 and Q2 present the price and quantity after the supply changes. Equilibrium price increases, and equilibrium quantity decreases.
5
Demand rises by more than supply rises
D1 presents demand increases, and S1 presents supply increases. P2 and Q2 present the price and quantity after the supply and demand change. Equilibrium price increases less equilibrium quantity increases.
6
Demand rises by the same amount that supply rises
D1 presents demand increases, and S1 presents supply increases. P2 and Q2 present the price and quantity after the supply and demand change. Equilibrium price doesn’t change, and equilibrium quantity increases.
7
Demand rises by less than supply rises
D1 presents demand increases, and S1 presents supply increases. P2 and Q2 present the price and quantity after the supply and demand change. Equilibrium price decreases by less than equilibrium quantity increases.
8
Demand rises by more than supply falls
D1...