This is a collection of diagrams for supply and demand. It is mainly for my benefit, so when creating a post, like the price of tea (or when I’m teaching online) I can easily find a suitable diagram to illustrate what is happening.
Demand curve
A contraction on the demand curve is due to higher price leading to lower demand
An extension on the demand curve is due to lower price leading to higher demand.
The supply curve
A higher price causes an extension along the supply curve (more is supplied)
A lower price causes a contraction along the supply curve (less is supplied)
Supply Shifts to the left
In this diagram the supply curve shifts to the left. It leads to a higher price and fall in quantity demand. The supply curve may shift to the left because of:
Higher costs of production
Higher taxes
Fall in productivity
Supply and Demand Shift Right
In this diagram, supply and demand have shifted to the right. This has led an increase in quantity (Q1 to Q2) but price has stayed the same.
It is possible, that if there is an increase in demand (D1 to D2) this encourages firms to produce more and so supply increases as well.
Diagram showing Increase in Price
In this diagram, we have rising demand (D1 to D2) but also a fall in supply. The effect is to cause a large rise in price.
For example, if we run out of oil, supply will fall. However, economic growth means demand continues to rise.
Increase in Demand
An increase in demand leads to higher price and higher quantity.
Increase in demand with inelastic supply
A Fall in Demand
Fall in demand increase supply
Fall in Supply
Fall in supply causing lower quantity and higher price.
Increase in supply – inelastic demandAn increase in supply when demand is inelastic only causes a small rise in demand.
Market equilibrium
Excess supply involves price above the equilibrium
Excess demand
Increase in demand
Rise in demand and rise in supplt
Increase in demand causes supply to increase in long term.
Price set below the equilibrium (football)
Inelastic supply and bigger increase in demand
UK Housing market has often seen demand increase at a faster rate than supply, causing price to rise.
Supply increase same as demand.
Elasticity
The effect of a subsidy depends on the elasticity of demand
The effect of a tax depends on elasticity of demand
The effect of rise in demand depends on elasticity of supply
thank you so much, can you please assist if the quantity stay the same and demand increase so as price please show me how to plot in a diagram
This is helpful. Thank you so much
Pls excuse me ,were u given an answer to your question
i like this page, this web page is very helpful.
and is informative to understand demand and supply curve.
This is helpful thanx,
This page has helped a lot..Thanks
This page is very helpful……Thanks
This page is very helpful but pls also put the effect of extension and contraction in supply in one diagram
Thank you very much for presenting the concept of demand and supply in a simple way to understand.
Can someone assist me with a graph were there is an increase in the demand for a product and an increase in the price of labour due to the demand increase?
Please I would like your help, because I’m not really good in that topic.
Thank you very very much. I’m from pakistan and I’m now doing CMA in Pakistan this websites is very helpful for all levels of students. I say again to you thank you very much
How to address this question?: Suppose the price of platinum were to rise. Using a diagram, explain how the change in the price this commodity would affect the rand-dollar exchange rate, ceteris paribus.
Do you know the fourth law and fifth of demand and supply the aid of diagram for each
thank you so much, can you please assist if the quantity stay the same and demand increase so as price please show me how to plot in a diagram
This is helpful. Thank you so much
Pls excuse me ,were u given an answer to your question
i like this page, this web page is very helpful.
and is informative to understand demand and supply curve.
This is helpful thanx,
This page has helped a lot..Thanks
This page is very helpful……Thanks
This page is very helpful but pls also put the effect of extension and contraction in supply in one diagram
Thank you very much for presenting the concept of demand and supply in a simple way to understand.
Can someone assist me with a graph were there is an increase in the demand for a product and an increase in the price of labour due to the demand increase?
Please I would like your help, because I’m not really good in that topic.
Thank you very very much. I’m from pakistan and I’m now doing CMA in Pakistan this websites is very helpful for all levels of students. I say again to you thank you very much
How to address this question?: Suppose the price of platinum were to rise. Using a diagram, explain how the change in the price this commodity would affect the rand-dollar exchange rate, ceteris paribus.
Do you know the fourth law and fifth of demand and supply the aid of diagram for each
Thanks alot 🤩 you helped alot