Demand and Supply Theory Problem Set
#1: Using demand and supply curves, diagrammatically demonstrate what happens to the equilibrium price and quantity when: An increase in demand that is greater than the increase in supply? and Demand falls and supply is constant
#2: Use a demand/supply curve or both to graphically demonstrate the following:
A. The demand for automobiles when the price of gasoline rises sharply and stays high.
B. The supply of computers if a tax is placed on the production of computers.
#3: Without drawing a graph, identify whether the demand curve will shift rightward or leftward:
A. A decrease in the number of buyers
B. A rise in the price of substitutes
#4: Using an appropriate demand or supply curve, demonstrate and explain the economics (if any) in the following observation:
