Equilibrium Market Prices You should be able to: -use a demand and supply diagram to show how equilibrium prices are determined -show and describe changes.

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Presentation transcript:

Equilibrium Market Prices You should be able to: -use a demand and supply diagram to show how equilibrium prices are determined -show and describe changes in equilibrium price due to changes in demand and supply

Proper Economics diagrams….. Big and clear Labelled properly – axes and curves Titled Use a sharp pencil and a ruler

How to describe changes in price using diagrams. For example.... The diagram shows that demand for ….. has increased from D to D1. This is shown by a movement of the demand curve to the right. This has been caused by ……….. As a result, price has increased from P* to P1, causing an expansion of supply from a to b. The original price and quantity were P* and Q*. The new price and quantity are P1 and Q1.

Equilibrium price – home study Research 5 examples of products where prices have changed recently due to changes in demand and/or supply. For each you should complete – A diagram and an explanation – 5 marks for the diagram – axes, labels, correct movement, change in price/quantity shown, neat – 5 marks for the explanation