1. Home
  2. Education
  3. Economics

Supply & Demand Practice Question

By , About.com Guide

3 of 7

Supply & Demand Practice Question - Part A

Supply & Demand Image 2

Supply & Demand - Part A

Illustrate each of the following events using a demand and supply diagram for bananas:

Reports surface that some imported bananas were infected with a virus.

This should certainly reduce the demand for bananas as they are now far less desirable to consume. Thus the demand curve must shift down, as shown by the green line. Note that our equilibrium price is lower along with our equilibrium quantity. Our new equilibrium price is denoted by p*' and our new equilibrium quantity is denoted by q'*.

Explore Economics

About.com Special Features

A Smarter Future

Tips that will help finance your education, excel in the classroom, and advance your career. More >

How to Ace the GRE

Being well prepared is the first step; here are more essential suggestions. More >

  1. Home
  2. Education
  3. Economics
  4. Macro, Micro, Other Fields
  5. Microeconomics
  6. Supply and Demand
  7. Demand
  8. Supply & Demand Practice Question

©2009 About.com, a part of The New York Times Company.

All rights reserved.