Econ 8/29

with a negative demand shock when is supply elastic

elastic

market demand

if market conditions affect demand curve, the demand curve shifts

with a negative demand shock when is the supply inelastic

in short run

for the same price, the quantity demanded has...

increased

positive demand shock means demand has

increased

if there is a positive demand shock what happens to supply curve

increased supply, shifts to the right.

what happens to supply when a + demand shock pushes up the price

increases

with an inelastic supply curve what is the response to a + demand shock

less response in quantity, more response to price

with an elastic supply curve what is the response to a + demand shock

less response to price, more response to quantity

less remote workers, school districts got worse, interest rates raised are examples of

negative demand shock

increased labor costs, restrictions on permits are an example of

negative supply shocks

with a - demand shock, what happens when supply is inelastic

no quantity response, decrease in price

remote working, school districts got better, interest rate lowered are examples of

positive demand shock

decreased labor costs are an example of

positive demand shocks

what happens when there is a negative demand shock

price goes down, quantity goes down

what happens when there is a negative supply shock

price goes up, quantity goes down

what happens when there is both a negative demand and supply shock

price is ambiguous but quantity goes down

what happens to supply when there is a - demand shock

pushes down the price, supply decreases

with a -supply shock, what happens with a more elastic demand

small increase in price, larger decrease in Q

price goes up, quantity goes up....

supply

negative demand shock means that

demand has decreased

for the same price quantity demanded has...

decreased

if there is a negative demand shock, what happens to supply curve

decreased supply shift to the left