# D s pq j demand falls more thank supply falls with

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D↑ < S↑ P↓Q↑ (j) Demand falls more thank supply falls. With this the price will decrease and the quantity will also decrease. D↓ > S↓ P↓Q↓ (k) Demand falls less than supply falls. With this case the price will increase and the quantity will decrease. D↓ < S↓ P↑Q↓ Working with Numbers and Graphs 0 1 2 3 4 5 6 7 8 9 0 6 2 7 Demand 1 Supply 1 Demand 2 Suply 2 Quantity Demanded Price 3. Q: Draw a diagram that shows a larger increase in demand than the decrease in supply.
Page 3 of 7 Jason Raines Microeconomics (2600) 9:30 am Assignment 2 -2 0 2 4 6 8 10 0 6 2 5 Demand 1 Supply 1 Demand 2 Suply 2 Quantity Demanded Price 4. Q: Draw a diagram that shows a smaller increase in supply than the increase in demand.
Page 4 of 7 Jason Raines Microeconomics (2600) 9:30 am Assignment 2 Chapter 4 9. Q: What is the difference between a price ceiling and a price floor? What effect is the same for both a price ceiling and a price floor?
Working with Numbers and Graphs 2. Q: In the preceding diagram, what areas represent consumers, surplus at the equilibrium price of P E ? At P C ? (Keep in mind that, at P C , the equilibrium quantity is neither produced nor sold.)
Chapter 6 2. Q: For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic: (a) Price rises by 10%, and quantity demanded falls by 2%.
Page 5 of 7 Jason Raines Microeconomics (2600) 9:30 am Assignment 2 A: Inelastic 2 ∆Q d 10 ∆ P E d < 1 (b) Price falls by 5%, and quantity demanded rises by 4%.