1. Demand and supply analysis

2. The demand curve

3. The demand curve: The demand for potatoes (monthly)

4. Market demand for potatoes (monthly) Quantity (tonnes: 000s) Price (cents per kg) Demand Price (cents per kg) 4 Market demand (tonnes 000s) 700 A Point A

5. Quantity (tonnes: 000s) Price (cents per kg) Demand Price (cents per kg) 4 8 Market demand (tonnes 000s) 700 500 ABAB Point A B Market demand for potatoes (monthly)

6. Quantity (tonnes: 000s) Price (cents per kg) Demand Price (cents per kg) 4 8 12 Market demand (tonnes 000s) 700 500 350 ABCABC Point A B C Market demand for potatoes (monthly)

7. Quantity (tonnes: 000s) Price (cents per kg) Demand Price (cents per kg) 4 8 12 16 Market demand (tonnes 000s) 700 500 350 200 ABCDABCD Point A B C D Market demand for potatoes (monthly)

8. Quantity (tonnes: 000s) Price (cents per kg) Demand Price (pence per kg) 4 8 12 16 20 Market demand (tonnes 000s) 700 500 350 200 100 ABCDEABCDE Point A B C D E Market demand for potatoes (monthly)

9. Demand and supply analysis Shifts in the demand curve Shifts in the demand curve

10. D0D0 Price P OQ0Q0 Quantity An increase in demand

11. Price P O Quantity D0D0 Q0Q0 An increase in demand

12. Price P O Quantity D0D0 Q0Q0 D1D1 Q1Q1 An increase in demand

13. Price P O Quantity D0D0 Q0Q0 A decrease in demand

14. Price P O Quantity D0D0 Q0Q0 Q2Q2 D2D2 A decrease in demand

15. Demand and supply analysis The supply curve

16. The supply curve: The supply of potatoes (monthly)

17. Price (cents per kg) Quantity (tonnes: 000s) Supply Market supply of potatoes (monthly)

18. Price (cents per kg) Quantity (tonnes: 000s) Supply a P 4 Q 100 a Market supply of potatoes (monthly)

19. Price (cents per kg) Quantity (tonnes: 000s) Supply a b P 4 8 Q 100 200 abab Market supply of potatoes (monthly)

20. Price (cents per kg) Quantity (tonnes: 000s) Supply a b c P 4 8 12 Q 100 200 350 abcabc Market supply of potatoes (monthly)

21. Price (cents per kg) Quantity (tonnes: 000s) Supply a b c d P 4 8 12 16 Q 100 200 350 530 abcdabcd Market supply of potatoes (monthly)

22. Price (cents per kg) Quantity (tonnes: 000s) Supply a b c d e P 4 8 12 16 20 Q 100 200 350 530 700 abcdeabcde Market supply of potatoes (monthly)

23. Demand and supply analysis Shifts in the supply curve Shifts in the supply curve

24. Shifts in the supply curve P QO S0S0

25. P QO S0S0 S1S1 Increase Shifts in the supply curve

26. P QO S2S2 S0S0 S1S1 IncreaseDecrease Shifts in the supply curve

27. Demand and supply analysis Equilibrium

28. Equilibrium price and output : The Market Demand and Supply of Potatoes (Monthly)

29. The determination of market equilibrium (potatoes: monthly) Quantity (tonnes: 000s) Price (cents per kg) E D C B A a b c d e Supply Demand

30. Quantity (tonnes: 000s) Price (cents per kg) E D C B A a b c d e Supply Demand SHORTAGE (300 000) The determination of market equilibrium (potatoes: monthly)

31. Quantity (tonnes: 000s) Price (cents per kg) E D C B A a b c d e SURPLUS (330 000) Supply Demand The determination of market equilibrium (potatoes: monthly)

32. Quantity (tonnes: 000s) Price (cents per kg) E D C B A a b c d e QeQe PePe Supply Demand The determination of market equilibrium (potatoes: monthly)

33. Demand and supply analysis Effect of a shift in the demand curve Effect of a shift in the demand curve

34. Effect of a shift in the demand curve P Q O Pe1Pe1 Qe1Qe1 S D1D1 g

35. P Q O Pe1Pe1 Qe1Qe1 S D1D1 D2D2 g An increase in demand

36. P Q O Pe1Pe1 Qe1Qe1 S g h D1D1 D2D2 Effect of a shift in the demand curve

37. P Q O Pe1Pe1 Pe2Pe2 Qe1Qe1 Qe2Qe2 S g h i D1D1 D2D2

38. P Q O Pe1Pe1 Qe1Qe1 S D1D1 g

39. P Q O Pe1Pe1 Qe1Qe1 S D1D1 D2D2 g A decrease in demand

40. P Q O Pe1Pe1 Qe1Qe1 S D1D1 D2D2 g Effect of a shift in the demand curve Pe2Pe2 Qe2Qe2 n m

41. Demand and supply analysis Effect of a shift in the supply curve Effect of a shift in the supply curve

42. Effect of a shift in the supply curve P Q O Pe1Pe1 Qe1Qe1 D S1S1 g

43. P Q O Pe1Pe1 Qe1Qe1 D S1S1 g An increase in supply S2S2

44. Effect of a shift in the supply curve P Q O Pe1Pe1 Qe1Qe1 D S1S1 g S2S2 p

45. P Q O Pe1Pe1 Qe1Qe1 D S1S1 g S2S2 p Pe2Pe2 Qe2Qe2 q

46. P Q O Pe1Pe1 Qe1Qe1 D S1S1 g

47. P Q O Pe1Pe1 Qe1Qe1 D S1S1 S2S2 g A decrease in supply

48. P Q O Pe1Pe1 Qe1Qe1 D S1S1 S2S2 jg Effect of a shift in the supply curve

49. P Q O Pe1Pe1 Pe3Pe3 Qe3Qe3 Qe1Qe1 D S1S1 S2S2 jg k