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C719

Module 3

QuestionAnswer
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
Created by: chawk69
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