Movement of
Demand and Supply
Curves
An Increase in Demand
Price
S
p1
p
D
0
q
q2
D1
q1
Quantity
An Increase in Demand
 Leads to
1.
Demand curve SHIFTING outwards (D-D1)
2.
Price increases / Quantity increases (P1q1)
3.
Supply increases along the curve due to Increased
Price
A Decrease in Demand
Price
S
p
p1
D
D1
0
q1
q2
q
Quantity
A Decrease in Demand
 Leads to
1.
Demand curve SHIFTING inwards (D-D1)
2.
Price decreases / Quantity ____(P1Q1)
3.
Supply _______ along the curve due to decreased
Price
An Increase in Supply
Price
S
S1
p
p1
D
0
q
q2
q1
Quantity
Increase in Supply
 Leads to – Use diagram to complete
 1 shift to the right of Supply curve
 2. price _______ Quaintly (D/S) _____
 3. With lower price demand ___ along the curve
A Decrease in Supply
Price
S1
S
p1
p
D
0
q1
q2
q
Quantity
 Leads to –
 1 shift to the LEFT of Supply curve
 2. price _______ Quaintly (D/S) _____
 3. With higher price demand ___ along the curve
Draw & Explain the
Following…
1.
The Market for Gucci, following an increase in
Average income.
2.
The Market for Sun Block, once Monsoon has started.
3.
The Market for Petrol, following an increase in the
price of Crude Oil.
4.
The Market for Solar Panels, following the
announcement of a Fixed Subsidy.
Your Turn…
 In groups, think of examples of what could move
either a demand of supply curve.
 Test each other using the WBs.