📌 Supply and Demand🖊A Level Business - Practice How To Draw Demand And Supply Diagrams - Revision

Summary

This video explains how to draw demand and supply diagrams for economics exams, emphasizing common mistakes students make. It provides practical tips for labeling the axes, drawing demand and supply curves, and marking equilibria points. The video highlights the importance of fully labeling diagrams to earn marks, even if some aspects are incorrect. Additionally, it demonstrates shifts in demand and supply, offers practice questions, and explains key concepts like increases and decreases in both demand and supply. The video also encourages viewers to use related resources and practice regularly.

Takeaways

• 📝 Practice drawing demand and supply diagrams can help students maximize exam marks.
• 🎯 Label the vertical axis as 'Price' and the horizontal axis as 'Quantity' on the diagram.
• 📉 The demand curve is a downward sloping line, while the supply curve slopes upward.
• ✔️ Label the equilibria where supply meets demand with 'P1' (price) and 'Q1' (quantity).
• 🔄 Shifts in the demand curve are labeled as D1, D2, and so on for clarity.
• ⬆️ An increase in demand shifts the demand curve to the right, creating a new equilibrium (P2, Q2).
• ⬇️ A decrease in demand shifts the demand curve to the left, also resulting in a new equilibrium.
• 📐 Always start by drawing an 'X' on the axes to make the diagram clearer and ensure basic marks.
• 🏗️ Government subsidies can increase supply, shifting the supply curve to the right.
• 📊 The video emphasizes labeling diagrams correctly to maximize exam marks, even if shifts are drawn incorrectly.

Q & A

What is the first step in drawing a demand and supply diagram?

The first step is to draw the axes and label the vertical axis as 'price' and the horizontal axis as 'quantity'.

Why do students sometimes lose marks when drawing demand and supply diagrams?

Students may lose marks because they often draw only the demand curve without including the supply curve or labeling the equilibria, which results in an incomplete diagram and a score of zero.

What is the examiner's tip for starting a demand and supply diagram to maximize marks?

The tip is to start with the 'X' by drawing both the demand and supply curves and fully labeling the diagram. Even if the shifts are wrong, labeling the diagram correctly can earn you two marks.

How do you indicate an increase in demand on the diagram?

An increase in demand is shown by drawing a new demand curve to the right of the original curve and labeling it as D2. A new equilibrium is drawn and labeled as Q2 and P2.

What should be labeled on a fully drawn demand and supply diagram?

The axes should be labeled as 'price' and 'quantity', the demand and supply curves should be labeled (e.g., D1, S1), and the equilibrium points should be labeled as P1, Q1, etc., depending on shifts in demand or supply.

How do you show a decrease in demand on the diagram?

A decrease in demand is shown by drawing a new demand curve to the left of the original curve and labeling it as D2. The equilibrium shifts and is labeled as P2 and Q2.

What happens to the demand for sunglasses in the winter, and how would it be reflected on a demand and supply diagram?

The demand for sunglasses in the winter would decrease. This would be reflected by shifting the demand curve to the left and labeling the new curve as D2.

How do you show an increase in supply on the diagram?

An increase in supply is shown by drawing a new supply curve to the right of the original curve and labeling it as S2. The new equilibrium is labeled as P2 and Q2.

What is the effect of a government subsidy on the construction industry, and how would it appear on a diagram?

A government subsidy to the construction industry would lead to an increase in supply. This would be shown by shifting the supply curve to the right and labeling it as S2, with the new equilibrium labeled as P2 and Q2.

Why is it important to label diagrams fully in exam questions?

Labeling diagrams fully is crucial because even if you make errors in drawing the shifts, you can still earn marks for correctly labeling the axes, curves, and equilibria.