Short-cuts+when+working+out+these+problems



Now obviously if you are asked to fill in the gaps you do it. But if you just need to draw Supply and Demand Diagrams and work out equilibriums you can do it quicker simply by working out 2 points and joining and extending the lines. Obviously P=0 is a good one to calculate but also calculate the equilibrium point as well just to check.


 * Changes in the linear functions **

If for example Qd= a -bP Then if "a" changes then this is a shift in the Demand curve (an increase in "a" is a shift to the right) A change in "b" affects the steepness of the slope. The larger the value of "b" the shallower the demand curve is (the more "price elastic" demand is).

If for example Qs= c+dp Then if "c" changes then this is a shift in the Supply curve (an increase in "a" is a shift to the right) A change in "d" affects the steepness of the slope. The larger the value of "d" the shallower the supply curve is (the more "price elastic" supply is).