Chapter 3 Supply and Demand Use the graphing tool below to answer the following questions. The answers can be downloaded at the bottom of the page. - Draw a demand and supply diagram which illustrates the equilibrium price and quantity.
- Modify this diagram to show the consequences of market price which is higher (lower) than the market equilibrium.
- A firm which supplies the market has just opened a new larger factory, depict what will happen to the equilibrium price.
- The economy goes into recession, if this is a normal good depict what will happen to the equilibrium price.
Click here for full instructions on how to use the graphing tool
 Graphing tool instructions
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Download the answers (the zipped folder contains a Word and PDF version):
 Chapter 3 answers to graphical questions
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