A rise in the price of inputs will cause the supply line to move to the left, thus causing an increase in Price and decrease in quantity demanded.. a movement along the curve to the right it means decrease in Price and increase in Quantity thus it's an increase in supply.. try to draw it to understand!
draw a demand and supply diagram, at a price below equilibrium Qd > Qs, then the tendency will be that the price will increase (too much demand than what is supplied) to reach the equilibrium again
The price of beer is a non price determinant for pizza thus increase in price of Beer will lead to less pizza consumption thus less demand.. you have to understand the difference between change in quantity demanded and change in demand. check this video for better understanding ruclips.net/video/-fNgQk32tFQ/видео.html
Initially at A, then you have a shift in Demand from D1 to D2, as mentioned in the question you have excess demand of 150 => it means the price didn't change as you can see at a price of 3$ Qd= 400 Qs =250 excess of 150 (400-250)
why question 6 is C, I thought a rise in the price of inputs which may affect the price of the product --> causing a movement along the demand curve?
A rise in the price of inputs will cause the supply line to move to the left, thus causing an increase in Price and decrease in quantity demanded.. a movement along the curve to the right it means decrease in Price and increase in Quantity thus it's an increase in supply.. try to draw it to understand!
@@SocratGhadban i see. Thank you!
Can you explain the number 10 question
draw a demand and supply diagram, at a price below equilibrium Qd > Qs, then the tendency will be that the price will increase (too much demand than what is supplied) to reach the equilibrium again
Can you explain question no 8?
The price of beer is a non price determinant for pizza thus increase in price of Beer will lead to less pizza consumption thus less demand.. you have to understand the difference between change in quantity demanded and change in demand. check this video for better understanding ruclips.net/video/-fNgQk32tFQ/видео.html
Can you explain q 7
Initially at A, then you have a shift in Demand from D1 to D2, as mentioned in the question you have excess demand of 150 => it means the price didn't change as you can see at a price of 3$ Qd= 400 Qs =250 excess of 150 (400-250)