Demand and supply - short answer
Interaction of demand and supply
The data in the table below shows the demand and supply for digital cameras at various prices.
|Price (£)||Quantity demanded (millions per year)||Quantity supplied (millions per year)|
(a) Plot the demand and supply curves on a diagram.
(b) What would be the excess demand or supply if the price was set at £32?
(c) What would be the excess demand or supply if the price was set at £80?
(d) What is the equilibrium price and quantity?
(e) If income rises and demand, as a result, rises by 20 million units at each level, what will be the new equilibrium price?
In the table below tick the appropriate column to show the impact of the change given on the market for cinema tickets.
|Change||Demand shift right||Demand shift left||Supply shift right||Supply shift left|
|There is an increase in real incomes|
|Stelios Haji-Ioannou rolls out the EasyCinema low price model nationwide|
|The commission paid to film distributors by the cinemas falls|
|Planning law changes to restrict the development of out-of-town entertainment complexes|
|Pay-per-view cable, satellite and internet film services are developed and grow in popularity|
|Spiralling film production costs mean fewer new releases|
|Cinema operators develop new premium services|