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Demand & Supply Graphs

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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.

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Solution Summary

Demand and supply graphs are depicted. The demand increases less than supply increases are examined.

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