Supply and Demand Dynamics

The video tutorial explores various scenarios where supply and demand curves shift in a market. It examines the effects on equilibrium price and quantity when supply increases and demand decreases, supply decreases and demand increases, both supply and demand increase, and both decrease. The tutorial highlights that while price changes can be determined, quantity changes often remain ambiguous without specific curve data. The importance of labeling graphs and understanding curve shifts is emphasized, especially for exams.

When supply increases and demand decreases, what is the most likely effect on price?

• Price increases

• Price becomes indeterminate

• Price remains the same

• Price decreases

In a scenario where supply increases and demand decreases, what can be said about the change in quantity?

• Quantity is indeterminate

• Quantity remains the same

• Quantity definitely decreases

• Quantity definitely increases

If supply decreases and demand increases, what is the certain effect on price?

• Price increases

• Price decreases

• Price remains the same

• Price is indeterminate

When both supply and demand increase, what is the definite outcome for quantity?

• Quantity remains the same

• Quantity increases

• Quantity is indeterminate

• Quantity decreases

In the case where both supply and demand increase, what can be said about the change in price?

• Price definitely increases

• Price is ambiguous

• Price definitely decreases

• Price remains the same

When both supply and demand decrease, what is the certain effect on quantity?

• Quantity is indeterminate

• Quantity increases

• Quantity decreases

• Quantity remains the same

In a scenario where both supply and demand decrease, what can be said about the change in price?

• Price is ambiguous

• Price remains the same

• Price definitely decreases

• Price definitely increases

Why is it important to label curves and axes in economic graphs?

• To make the graph look colorful

• To ensure clarity and accuracy in interpretation

• To confuse the examiner

• To make the graph look complex

What should be shown when there is a shift in supply or demand on a graph?

• A change in color

• A change in the graph's size

• A shift in the title

• Arrows indicating the direction of the shift

What is the significance of labeling the vertical and horizontal axes as P and Q respectively?

• To indicate potential and quantity

• To indicate production and quota

• To indicate profit and quality

• To indicate price and quantity