Graphs

Question 1

Draw a PPF curve

Answer 1

curve (capital and consumer goods)

Question 2

Draw a demand curve, with an increase and a decrease.

Answer 2

\ increase to right and decrease to left

Question 3

Draw a demand curve, with an increase and a decrease.

Answer 3

/ (price & quantity) increase to the right and decrease to the left.

Question 4

Draw a graph to illustrate equilibrium price

Answer 4

X (price & quantity) draw equilibrium points in the middle of ross

Question 5

Draw a perfectly price elastic demand curve

Answer 5

– (price & quantity)

Question 6

Draw a perfectly price inelastic demand curve

Answer 6

I (price and quantity)

Question 7

Draw a relatively price elastic demand curve

Answer 7

nearly – (price and quantity)

Question 8

Draw a relatively price inelastic demand curve

Answer 8

\ (price &quantity)

Question 9

Illustrate economies of scale

Answer 9

SRAC little curves LRAC long curves include labels of economies of scale diseconomies of scale and optimum output (price &quantity)

Question 10

Draw a maximum price graph

Answer 10

X with – below (price and quantity) equilibrium in middle at S and D

Question 11

Draw a minimum price graph

Answer 11

X with – above (price and quantity) equilibrium in middle at S and D

Question 12

Draw a minimum wage graph

Answer 12

X with – above (wages and no. of workers employed) and draw equilibrium in middle at DL and SL

Question 13

Draw a buffer stock graph

Answer 13

/// (s3 s2 s1) and \ draw a – for price across the middle cross (price and quantity) draw equilibrium at where S meets price

Question 14

Show consumer surplus on a graph

Answer 14

X (price and quantity) equilibrium in middle shade above triangle

Question 15

Show producer surplus

Answer 15

X (price and quantity) equilibrium in middle shade below triangle

Question 16

Show excess demand

Answer 16

X (price and quantity) Pe and Qe price below cross is excess demand

Question 17

Show excess supply

Answer 17

X (price and quantity) Pe and Qe price below cross is excess supply

Question 18

Show Revenue and inelastic demand

Answer 18

\ (price and quantity) P1 P2 Q1 Q2 revenue higher at p1 (A)

Question 19

Show Revenue and elastic demand

Answer 19

Nearly – (price and quantity) P1 P2 Q1 Q2 total revenue at P2 (B) is higher

Question 20

Show effect of tax

Answer 20

(see book)

Question 21

Show effect of subsidies

Answer 21

(see book)

Question 22

Draw negative production externalities graph

Answer 22

(see book)

Question 23

Draw positive production externalities graph

Answer 23

(see book)

Question 24

Draw negative consumption externalities graph

Answer 24

(see book)

Question 25

Draw positive consumption externalities graph

Answer 25

(see book)