📌 Supply and Demand🖊A Level Business - Practice How To Draw Demand And Supply Diagrams - Revision
Summary
TLDRThis 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.
Outlines
🖊️ Introduction to Drawing Demand and Supply Diagrams
This video aims to help students understand how to draw demand and supply diagrams, often a source of confusion. With practice and tips, students can maximize marks in exams. It's recommended to review videos on factors affecting demand and supply to fully grasp diagram shifts. The video includes practice questions, so students should have a pen and ruler ready. The first step is labeling the axes: vertical as 'price' and horizontal as 'quantity.' The demand curve is drawn downward (labeled as D1 when shifted), and the supply curve upward (labeled as S or S1). Equilibrium is labeled as P1 and Q1, representing price and quantity. Even drawing a basic diagram with full labels can earn two marks on an exam. A key tip is to start with an 'X' on the diagram to ensure clarity.
📉 Showing Shifts in Demand: Increase and Decrease
This section focuses on shifts in demand. In exams, students might need to determine if demand will increase or decrease based on case studies. The video explains how to reflect these changes on a diagram. For an increase in demand, a new demand curve (D2) is drawn along with new equilibrium points (P2 and Q2). A decrease in demand follows a similar process, but the new curve is labeled as D2 to indicate the decrease. It's important to ensure diagrams are labeled correctly to differentiate between the original and shifted curves. Completing the diagrams with proper labeling guarantees full marks, even if the shift is incorrect.
🕶️ Practice Question: Demand for Sunglasses in Winter
The video introduces a practice question: 'Draw a demand and supply diagram to show the demand for sunglasses in winter.' Since demand decreases in winter, students are advised to reflect this in their diagrams by starting with the 'X' and showing a decrease in demand. After pausing the video to attempt the question, the answer shows a decrease in demand, demonstrated by the shift to D2. The video also promotes a 'cheat sheet' document, containing factors affecting demand and supply, to assist students in their revision.
Mindmap
Keywords
💡Demand curve
💡Supply curve
💡Equilibrium
💡Shifts in demand
💡Shifts in supply
💡Price
💡Quantity
💡Increase in demand
💡Decrease in demand
💡Government subsidy
Highlights
The video focuses on drawing demand and supply diagrams, which students often find challenging but can master with practice.
The first step in drawing a demand and supply diagram is to label the axes correctly: the vertical axis as price and the horizontal axis as quantity.
A complete diagram includes both a demand curve (downward sloping) and a supply curve (upward sloping), which must be fully labeled.
Always label the equilibrium where the demand and supply curves intersect, marking it as P1 for price and Q1 for quantity.
To maximize marks, start drawing the demand and supply diagram by creating an 'X' shape right after labeling the axes.
An increase in demand is shown by shifting the demand curve to the right (D2) and adjusting the equilibrium accordingly (P2 and Q2).
A decrease in demand is reflected by shifting the demand curve to the left (D2) and labeling the new equilibrium points (P2 and Q2).
If you make a mistake with the shift but fully label the diagram, you will still receive partial credit (two marks in a four-mark question).
When drawing shifts in supply, an increase in supply shifts the supply curve to the right (S2) with new equilibrium points (P2 and Q2).
A decrease in supply shifts the supply curve to the left, again requiring proper labeling of the new equilibrium points.
The video recommends using the 'X' shape as a consistent starting point for all demand and supply diagrams to ensure correctness.
A practical example: the demand for sunglasses decreases in winter, which is reflected by a leftward shift of the demand curve.
In questions involving subsidies (e.g., for the construction industry), the supply curve shifts right to show an increase in supply.
Proper labeling and consistency in the diagrams are crucial for scoring full marks in exams, even if there are minor errors in shifts.
The video includes practice questions with fully labeled diagrams to help students understand the application of the concepts.
Transcripts
this video will show you how to draw
demand and supply diagrams
as so many students often find it
challenging and a little confusing
but with practice and the tips i'll give
you you'll be able to maximize marks and
show the examiners what they're looking
for feel free to revisit this video
anytime you need to as well
do ensure you've watched the factors
affecting demand and the factors
affecting supply videos so you have a
good understanding of why shifts occur
on these
diagrams this video will also have
practice questions
so grab your pen and a ruler and let's
practice drawing the diagrams you can
pause the video as we go along if needed
you may have learned to draw the demand
curve like this which is correct it is
not wrong however i've seen as an
examiner when students are asked to draw
a demand and supply diagram this is all
they might draw
which is incomplete
and so they get
zero marks
which is not what you want
so to avoid that i'll show you how to
get full marks when you need to draw a
demand and supply diagram
the first step is to draw the axes
you should label the vertical axis as
price
and the horizontal axis is quantity
the demand curve is a downward sloping
line and we'll label it as d
we'll label it as d1 later when we've
made a shift
and then we draw the supply curve which
is a upward sloping line
and label it as s or s1
so let's continue to label our diagram
we now need to include the equilibria
so it starts on the equilibrium
in the very center where supply meets
demand and then we label that part of
the equilibria as
p1
and we continue
and we label that as q1 so it should be
as you can see it like that
it shouldn't be straight lines
when you're drawing the equilibria
now if you have a format question and if
you just draw this
and label it fully even if you get the
shifts wrong you will get two marks
i often tell my students to just start
off with the x
so draw in the letter x
straight after you have drawn the axes
then draw the letter x
and fully label it and you're good to go
so remember
start off with the x
a little reminder for you
now this part of the video will focus on
demand and shifts in demand whether
there's an increase in demand
or a decrease in demand
now you could be asked in an exam
question
to construct a supply and demand
diagram and within the case study you
will need to ascertain whether there's
going to be an increase in demand
or a decrease in demand now if you're
not sure about the factors that affect
demand
do check out this video i will put the
link to it in the description box
let's take a look at what a shift on the
demand curve would look like
we'll look at an increase in demand and
a decrease in
demand first of all we will look at an
increase in demand
so we started off with the x and we
fully label the axes and we've labeled
the demand curve and the supply curve
and we've drawn our equilibria
now we're going to show a increase in
demand
so we need to draw a new demand curve
there's our new demand curve but we need
to label it so we'll label it as d2
now we need a new equilibria
so we join the equilibria
and then we will label that as q2
and we will continue to draw equilibria
and label this as
p2
so now we have shown an increase in
demand
i hope you've got that down
i hope you've seen that was super
straightforward
just a reminder to please like
share and subscribe
as i do post regularly
now let's show a decrease in demand
so to draw a demand and supply diagram
to reflect a decrease in demand
we start off again by drawing our axes
label them price
and quantity
then we have the demand curve and we
label that as
d
and we have our supply curve and we
label that with an s
so far so good
so now we need to draw our equilibria so
we will do that quickly
label it p1
and then label it q1 so that gives us
two marks if it was a four mark question
and that's what i mean by starting off
with the x fully labeling that
making sure that we have gained some
marks
even if our shift goes incorrectly
so now we're going to
put our shift in and it's a decrease in
demand
you might have noticed that our d has
changed
from d to d1 and that's because we're
making a shift so sometimes it might be
d
and then your new shift might be d2 or
you might change the d to d1 to d2 as
long as you show
that there's difference from your
original demand curve to the new one
they both can't
be
labeled as d for example there's got to
be a difference so i'm labeling this one
as d1 and the new curve i'm going to
label as d2
so let's bring in our new curve we're
showing a decrease in demand
d2
and including our equilibria
and we'll put q2 down
and we will continue
can you guess
yes that's p2
so that would give you four marks out of
a four mark question if you're asked to
draw a demand and supply diagram and
reflect a decrease in demand
it's as simple as that
label your diagrams
wasn't that straightforward
so just to show you an increase in
demand fully labeled diagram there and a
decrease in demand another fully labeled
diagram
let's try a practice question
draw a demand and supply diagram to
reflect the demand for sunglasses
in the winter
do check out this demand and supply
cheat sheet to use for your revision
this document includes all the factors
affecting demand and all the factors
affecting supply with questions
and the fully labeled demand and supply
diagrams as answers
i'll put the link to it in the
description box
okay so back to this question so give it
some thought
and we'll talk through it
i'd like for you to consider what would
happen to the demand for sunglasses in
the winter
the diagram helps us to predict what
will happen in the market when there is
a change
so we need to consider the change and
the change here is that it's no longer
summer it is winter
it's a change in seasons
so what would happen is demand for
sunglasses in the winter would fall
you can attempt this question
now remember to start off with the x
and then show a decrease in demand
you can pause the video and attempt the
question now
alright so here is the answer a decrease
in demand
would look like this
did you get it right
now onto shifts on the supply
curve again we start with the x
so this is what our x would look like as
we know but for this part of the video
we're now focusing on the supply curve
almost there
we'll start off by looking at an
increase in supply so we're only making
changes to the supply curve here
bring in a new supply curve
and we will label it as s2
we can't have it being called s1
s2
and now we need to include our
equilibria
so we do that and we will label it p2
that's price level 2 p2
and continue with our equilibria and
label it q2
quantity 2
and that's it
increase in supply
that's straightforward
so if there's a decrease in supply
and we're asked to draw a diagram
we would start off with the x we do that
with
any demand and supply diagram we start
off with the x it makes it so much
simpler
and you will still get marks for it
so start off with the x and we're
focusing on the supply curve
so we bring in our new supply curve
and we label it as s2
draw our equilibria
p2
and that is q2
and that is a decrease in supply
now you should have drawn a decrease in
supply
before we look at our practice question
let's just look at the two diagrams side
by side so increase in supply looks just
as follows
and a decrease in supply
looks like that
on to our practice question
construct a demand and supply diagram to
show a government subsidy being used to
support the construction industry
we now need to think
is this a factor that would affect
demand so the demand curve for change
or a factor affecting supply
if you're not sure about the factors
then do check out these videos
you need to know the factors
remember to start off with the x
this question gives mention to a subsidy
in the construction industry
in this instance for this question
the impact would be on supply
but you now need to consider where the
supply would increase or decrease so if
a subsidy is being given to the
construction industry there would be an
increase in supply
you can pause the video and attempt to
draw the diagram
and here is the answer
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you
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