1 Movements Along Demand Curve and Changes in Demand

Distinguish between a change in price versus a change in the non-price factors of demand

Price per 3' Apple $2.00 A (0, $2.00) $L75 $1.50 $1.25 B (3, $1.25) $1.00 50.75 C (5, $0.75) 5050 $0 25 Demand D (8, $0.00) x 0 'I 2 3 4 5 6 7 8 Quantity of Granny Smith Apples per Week Price Supply Demand X O QuantityPrice per Apple $2.00 Supply $1.75 $1.50 $1.25 $1.00 Equilibrium $0.75 - - - $0.50 $0.25 Demand X 0 1 2 3 4 5 6 7 Quantity of Apples (in thousands of bushels)Price of Apple $2.00 $1.75 Supply $1.50 $1.25 $1.00 $0.75 - - - - $0.50 $0.25 - - Demand X O 1 2 3 4 5 6 Quantity of Apples (in thousands)Price (wage y per hour) $15.00 $14.00 $13.00 $12.00 Consumer Surplus $11.00 Supply $10.00 $9.00 Deadweight Minimum $8.00 Producer Loss Price $7.00 Surplus $6.00 $5.00 Producer Surplus $4.00 $3.00 $2.00 $1.00 Demand $0.00 X 0 1 2 3 4 5 6 7 8 10 11 12 13 14 15 Quantity Of Workers (in millions)Price (monthly rent) $4000 $3500 Supply $3000 Deadweight Consumer Loss $2500 Surplus $2000 $1500 Maximum Price - - $1000 Producer I Surplus $500 Demand 0 1 2 3 4 5 6 Quantity of Apartments (in millions)