Task Sheet
Task 1: Predicting the new market equilibrium due to changes in the determinants of demand or
supply, using graphical analysis (use the backside of the paper)
Example:
Scenario / case d):
The initial market equilibrium is P1 and Q1, determined by the
intersection of S1 and D. The new production technology that
improves productivity means that Samsung can now produce
smartphones at a lower cost. Samsung is able to supply more
smartphones at any given price level. The supply is increased,
which graphically is represented by a shift of the supply curve
to the right (from S1 to S2). The resulting new market
equilibrium is P2 and Q2. The price has decreased and the
quantity supplied and demanded has increased.
In a similar manner, work out the cases a), b), and c).
Task 2: Choose the correct answer (2 exercises)
1)
2)