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C719
Module 3
Question | Answer |
---|---|
An increase in income | Demand shifts right |
An increase in the price of a substitute | Demand shifts right |
An increase in the price of a complement | Demand shifts left |
A change in the price of the good | No shift |
Effect of a price increase on demand | Quantity demanded falls |
Effect of a price decrease on demand | Quantity demanded rises |
Increase in the number of sellers | Supply shifts right |
Decrease in the cost of production | Supply shifts right |
Input prices increase | Supply shifts left |
When the price changes | No shift |
Effect of a price increase on supply | Quantity supplied rises |
Effect of a price decrease on supply | Quantity supplied falls |
Where supply and demand cross | Equilibrium |
Demand shifts to the right -> Price _______ / Quantity ________ | Rises / Rises |
Demand shifts to the left -> Price _______ / Quantity ________ | Falls / Falls |
Supply shifts to the right -> Price _______ / Quantity ________ | Falls / Rises |
Supply shifts to the left -> Price _______ / Quantity ________ | Rises / Falls |