Question

Chapter 3 When Demand increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When Supply de creases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity demanded increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity supply decreases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. What causes demand or supply to change? What causes quantity demanded or quantity supplied to shift?

Answer 1

a) When demand decrease, its a shift of the demand curve.The demand curve will shift to the left.

b) When supply decreases,its a shift of the supply curve.The supply curve will shift to the left.

c) When quantity demanded increases,its a movement along the demand curve.There would be a downward movement along the demand curve.

d) When quantity supply decreases,its a movement along the supply curve.There would be an upward movement along the supply curve.

e) The demand and supply changes due to factors other the price of the good such as the cost of input,people's expectations,etc.When the cost of input decreases,the supply increases or when the price of substitutes increases,the demand increases.

f) The quantity demanded and quantity supplied changes due to the changes in the price of the good. When price increases,the quantity demanded decreases and the quantity supplied increases.