Summary of Demand and Supply Theory Demand Definition Factors affecting Supply

Equilibrium Price and Quantity in the Market

Scenario (1) (i) Look into the context of an Agricultural product Market. (Consider the factors that cause an increase in demand and supply remains constant.) [Illustrate with a diagram]

Scenario (2) (ii) Look into the context of an Agricultural product Market. (Consider the factors that cause an increase in supply and demand remains constant.) [Illustrate with a diagram]

Equilibrium Price and Quantity in the Market

Scenario (3) (iii) Look into the context of an manufactured good market. (Consider the factors that cause an increase in demand and supply remains constant.) [Illustrate with a diagram]

Scenario (4) (iv) Look into the context of an manufactured good market. (Consider the factors that cause an increase in supply and demand remains constant.) [Illustrate with a diagram]

Equilibrium Price and Quantity in the Market

Scenario (5) (v) Look into the context of an agricultural product market. (Consider the factors that cause a change in both demand and supply.) [ Illustrate with a diagram]

Equilibrium Price and Quantity in the Market

Scenario (6) (vi) Look into the context of a manufactured product market. (Consider the factors that cause a change in both demand and supply.) [ Illustrate with a diagram]

Summary Elasticity of Demand and Supply Price Elasticity of Demand (ED) Income Elasticity of Demand (EY) Cross Elasticity of Demand (EX) Price Elasticity of Supply (ES)

Definition Formula

Factors affecting

Signs + - ve values only ED > 1 Magnitude ED < 1 Consider only Normal good EY < 1 EY>1 Substitutes and complements Low High values values + ve values only ES > 1 ES < 1

As Price increases, TR Effects on TR

As Price Increases, TR

Dd Curve (shift or movement of the demand curve) Unique character (Deduction from the value of its elasticity)