Explain the difference between a movement along the demand curve and a shift of the demand curve. What causes each?

A movement along the demand curve is caused by a change in the price of the good itself, while a shift of the demand curve is caused by changes in the determinants of demand (e.g., income, tastes, expectations, prices of related goods).

What are the five shifters of demand mentioned in the video?

The video mentions that there are 5 shifters of demand, but does not list them. The video mentions 'price of related goods' as one example.

What are the five shifters of supply?

The video mentions that there are 5 shifters of supply, but does not list them.

Suppose there is a sudden increase in the cost of sugar, an input used to produce soda. Using supply and demand analysis, explain what will happen to the equilibrium price and quantity of soda.

The supply curve for soda will shift to the left, leading to a higher equilibrium price and a lower equilibrium quantity.

Assume that new studies reveal that coffee has significant health benefits. What impact will this have on the market equilibrium for coffee?

The demand curve for coffee will shift to the right, leading to a higher equilibrium price and a higher equilibrium quantity.

Supply And Demand: Finding Market Balance Lesson Plan for Grade 12

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Learning Objective

I can analyze how shifts in supply and demand curves affect market equilibrium.

1
Equilibrium occurs where the quantity demanded exactly equals the quantity supplied.
2
There are 5 shifters of demand and 5 shifters of supply that cause the entire curve to move.
3
When new grilling technology increases the supply of hamburgers, the price will decrease and the quantity will increase.

Supply and Demand: Finding Market Balance

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Learning Objective

Warm-Up Video

Key Concepts

Practice Questions

Exit Ticket

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