Please draw these four graphs carefully as you would for a workplace memo. There are no equations or numbers in this exercise.
1.Demand increases; Supply increases. [Both curves move in the same direction.]
a.Demand increases more than Supply increases. (i.e. the D curve shifts more to the right than the Supply curve shifts to the right.)
b.Demand increases less than Supply increases.
2.Demand increases; Supply decreases. [Each curve moves in the opposite direction.]
a.Demand increases more than supply decreases.
b.Demand increases less than supply decreases.
Demand and supply graphs are depicted. The demand increases less than supply increases are examined.