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Does a price ceiling attempt to make a price high…

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Problem 1 Problem 2 Problem 3 Problem 4 Problem 5 Problem 6 Problem 7 Problem 8 Problem 9 Problem 10 Problem 11 Problem 12 Problem 13 Problem 14 Problem 15 Problem 16 Problem 17 Problem 18 Problem 19 Problem 20 Problem 21 Problem 22 Problem 23 Problem 24 Problem 25 Problem 26 Problem 27 Problem 28 Problem 29 Problem 30 Problem 31 Problem 32 Problem 33 Problem 34 Problem 35 Problem 36 Problem 37 Problem 38 Problem 39 Problem 40 Problem 41 Problem 42 Problem 43 Problem 44 Problem 45 Problem 46 Problem 47 Problem 48 Problem 49 Problem 50 Problem 51 Problem 52 Problem 53 Problem 54 Problem 55 Problem 56 Problem 57

Problem 26 Medium Difficulty

What causes a movement along the demand curve?
What causes a movement along the supply curve?

Answer

As shown in above diagram, movement along the supply curve is from A to B and from A to C. When there is a movement from A to B, the price reduces from $p$ to $p_{1}$ i.e. from 15 to 10 and there is a contraction of supply from $q$ to $q_{1}$ i.e. from 150 to 100 . When there is a movement from A to $\mathrm{C}$ , the price increases from $p$ to $p_{2}$ i.e. 15 to 20 and there is an expansion of supply from $q$ to $q_{2}$ i.e. from 150 to 200 .

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Principles of Microeconomics for AP® Courses

Chapter 3

Demand and Supply

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Video Transcript

all right, We're doing problem number 26 which is asking what causes the movement along. Demand her what caused the movement along the supply curve. So let's drive. Here's the demand curve. And what's gonna cause you to go from here? Thio here. Well, shifted the supply curve. These are really poorly drawn. Speicher's Jeez, um, a shift of a supply curve from here to here is gonna cause a movement along the commander. Demand itself is not changing demands. This whole curve isn't changing, but the quantity demanded, uh is changing. And that's what a movement along the curve means. It's a changing quantity, demands for quantity supplied. And the only way that's gonna be changing is due to the intersection changing with supply curves of years like by 2 to 1. And the same will be true in the opposite direction. Let's show it. So here is our supply curve And how are we gonna see a shift from here to here? Well, same thing. Demand shifts, man. One to me in two. Since demand is shifting right, there's This isn't moving along. Spicher. The quantity supplied is changing, but supply itself a function. The curve is not changing. Just the quantity is changing, which indicates movement along the curve

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