Scribd
Upload
147 views2 pages

DD SS Revised

The document contains lecture notes on demand and supply curves, detailing movements along the curves due to price changes and shifts in the curves due to external factors. It explains upward and downward movements along the demand and supply curves, as well as rightward and leftward shifts indicating increases or decreases in demand and supply. The notes include graphical representations and examples to illustrate these concepts.

Uploaded by

Sethu Mdanyana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
147 views2 pages

DD SS Revised

The document contains lecture notes on demand and supply curves, detailing movements along the curves due to price changes and shifts in the curves due to external factors. It explains upward and downward movements along the demand and supply curves, as well as rightward and leftward shifts indicating increases or decreases in demand and supply. The notes include graphical representations and examples to illustrate these concepts.

Uploaded by

Sethu Mdanyana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Derek’s ECO151 lecture notes

[1]: Upward movement along the demand curve


Only reason: Price of the good increases now, so quantity demanded decreases.
Price

B
R12

R7 A

0 10 20 Quantity
[2]: Downward movement along the demand curve
Only reason: Price of the good decreases now, so quantity demanded increases.
Price

C
R10

R5 D

0 8 16 Quantity
[3]: Rightward shift of demand curve (= increase in demand)
Quantity demanded increases at all prices due to factors other than price change
Price
D1 D2 At P = R10, QD increases from 20 (point E in
curve D1) to 38 (point F in curve D2) due to
increase in population, for example.
R10 E F
We can also add point J (P = 5 and QD = 30 in
D1) and point K (P = 5 and QD = 48 in D2) in
the figure.

0 20 38 Quantity
[4]: Leftward shift of demand curve (= decrease in demand)
Quantity demanded decreases at all prices due to factors other than price change
Price
D2 D1

R10 H G

0 16 32 Quantity
Derek’s ECO151 lecture notes
[1]: Upward movement along the supply curve
Only reason: Price of the good increases now, so quantity supplied increases.
Price

B
R12

R7 A

0 10 20 Quantity
[2]: Downward movement along the supply curve
Only reason: Price of the good decreases now, so quantity supplied decreases.
Price

R10 C

R5 D

0 8 16 Quantity
[3]: Rightward shift of supply curve (= increase in supply)
Quantity supplied increases at all prices due to factors other than price change
Price
S1 S2 At P = R10, Q increases from 20 (point E in
S
curve S1) to 38 (point F in curve S2) due to
increase in the number of firms, for example.
R10 E F
We can also add point J (P = 5 and QS = 10 in
S1) and point K (P = 5 and QS = 28 in S2) in
the figure.

0 20 38 Quantity
[4]: Leftward shift of supply curve (= decrease in supply)
Quantity supplied decreases at all prices due to factors other than price change
Price
S2 S1

R10 H G

0 16 32 Quantity

You might also like