Activity 2(f) – Predictions

Activity 2f: Making predictions using demand and supply diagrams

  1. Supply shifts left (climatic conditions), P increase, Q decrease
  2. Supply shifts left (cost of production), P increases, Q decreases
  3. Supply shifts left (cost of production), P increases, Q decreases
  4. Demand shifts right (price of subsititute), P increases, Q increases
  5. Demand shifts right (consumer sentiment), P increases, Q increases
  6. Demand shifts right (disposable income, consumer sentiment), P increases, Q increases
  7. Supply shifts right (cost of production), price decreases, Quantity increases
  8. Demand shifts left (iron ore is used in production and the lockdowns reduce production in China so less is needed), price decreases and quantity decreases
  9. Decrease shifts left (price of complements). P decrease, Q decrease
  10. Demand shifts right (the government policy might encourage people to have more children so the demand for clothes will increase). The policy might also have positive impacts on supply (although most of the clothes will be made overseas). Price increase, quantity increase.
Next Page