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  • Supplementary Notes of Topic 2 - Part 2

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    Lap Sang Ho
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    When demand decreases and supply increases in the apple market, the price of apples decreases and the quantity exchanged decreases. There are three possible outcomes depending on whether the decrease in demand is less than, greater than, or equal to the increase in supply: 1) If demand decreases less than supply increases, quantity exchanged increases; 2) If demand decreases more than supply increases, quantity exchanged decreases; 3) If demand decreases equal to supply increases, quantity exchanged remains the same.

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    Supplementary notes of topic 2 _part 2

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    When demand decreases and supply increases in the apple market, the price of apples decreases and the quantity exchanged decreases. There are three possible outcomes depending on whether the decrease in demand is less than, greater than, or equal to the increase in supply: 1) If demand decreases less than supply increases, quantity exchanged increases; 2) If demand decreases more than supply increases, quantity exchanged decreases; 3) If demand decreases equal to supply increases, quantity exchanged remains the same.

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    6 views4 pages

    Supplementary Notes of Topic 2 - Part 2

    Uploaded by

    Lap Sang Ho
    When demand decreases and supply increases in the apple market, the price of apples decreases and the quantity exchanged decreases. There are three possible outcomes depending on whether the decrease in demand is less than, greater than, or equal to the increase in supply: 1) If demand decreases less than supply increases, quantity exchanged increases; 2) If demand decreases more than supply increases, quantity exchanged decreases; 3) If demand decreases equal to supply increases, quantity exchanged remains the same.

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    of 4

    In apple market, demand decreases and supply increases:

    When demand decreases, both Pe ____ and Qe ____


    When supply increases, Pe ____ and Qe ____
    So the combined effect is: Pe ____ and Qe ____
    Three possible outcomes:
    1. Case 1 If demand decrease is less than supply increase, Qe ____
    2. Case 2 If demand decrease is more than supply increase, Qe ________
    3. Case 3 If demand decrease is equal to to supply increase, Qe ________
    Case 1 If demand decrease is less than supply increase

    apple
    Price
    S1

    Pe of apple ___
    Qe of apple ___

    P1

    D1
    Quantity
    Q1
    Case 2 If demand decrease is more than supply increase

    apple
    Price
    S1

    Pe of apple ___
    Qe of apple ___

    P1

    D1
    Quantity
    Q1
    Case 3 If demand decrease is equal to supply increase

    apple
    Price
    S1

    Pe of apple ___
    Qe of apple ___

    P1

    D1
    Quantity
    Q1

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