Questions for economic reasoning and discussion

1. Compare the definition of supply with the definition of demand given below. Note the similarities and differences?

Supply is a relationship showing the various amounts of a commodity that sellers would be willing and able to make available for sale at alternative prices during a given time period, all other things remaining the same.

Demand is a relationship showing the various amounts of a commodity that buyers would be willing and able to purchase at alternative prices during a given time period, all other things remaining the same.

Plot a supply curve according to a supply schedule given below and explain what a supply curve for a hypothetic product shows.

3. There are the lists of some of the most common sources of shifts in demand and supply. Since changes in any of the conditions other than price are represented graphically as a shift in the demand or supply curve, determine the direction of each shift and explain the cause-and-effect.

Demand curve

Increase in price of a substitute good, decrease in price of a substitute good, increase in price of a complementary good, decrease in price of a complementary good, increase in consumer income, decrease in consumer income, change in tastes toward preferences for the good, change in tastes away from preference for the good, changes in consumer expectations about future market conditions (depending on particular circumstances).