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    omarashab's Avatar
    omarashab Posts: 5, Reputation: 1
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    #1

    Aug 29, 2015, 11:54 AM
    Supply and Demand Curves Question
    Suppose there is a decrease in supply in a market where the supply curve slopes upwards and the demand curve slopes downwards. Which of the following would not occur?a) An excess supply. b) A fall in price.c) A fall in supplyd) A fall in the equilibrium level of expenditure.
    Please help
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Aug 29, 2015, 12:04 PM
    What do you think? Look at the question and plot a graph.
    omarashab's Avatar
    omarashab Posts: 5, Reputation: 1
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    #3

    Aug 29, 2015, 12:10 PM
    A decrease in supply means there is a shift in demand curve to the left correct? I don't understand the terms of sloping downwards and upwards, do the slopes changes of the demand and supply curves?

    I mean a shift in the supply curve, sorry..
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #4

    Aug 29, 2015, 12:11 PM
    Quote Originally Posted by omarashab View Post
    A decrease in supply means there is a shift in demand curve to the left correct? I don't understand the terms of sloping downwards and upwards, do the slopes changes of the demand and supply curves?
    Yes. In normal graphing, positive is up and negative is down. Upslope to the right is increasing demand. Downslope to the right is decreasing. Static would be no curve, a straight line.
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    omarashab Posts: 5, Reputation: 1
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    #5

    Aug 29, 2015, 12:19 PM
    Attachment 47767
    Is this graphing correct?
    omarashab's Avatar
    omarashab Posts: 5, Reputation: 1
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    #6

    Aug 29, 2015, 12:30 PM
    Can you please provide the answer first, then I will be able to understand the exact graph... much appreciated..
    the university provided me with the question answered it as C) a fall in supply.. but i think the price does not fall either since falling in supply would increase the price not decrease it, right?
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #7

    Aug 29, 2015, 01:05 PM
    Quote Originally Posted by omarashab View Post
    Can you please provide the answer first, then I will be able to understand the exact graph... much appreciated..
    the university provided me with the question answered it as C) a fall in supply.. but i think the price does not fall either since falling in supply would increase the price not decrease it, right?
    Handing you the answer is the same as doing your assignment for you... in the end you learn nothing by it. You show your work.. THEN we tell you were you are going wrong (As is REQUIRED by the site rules).
    omarashab's Avatar
    omarashab Posts: 5, Reputation: 1
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    #8

    Aug 29, 2015, 05:34 PM
    Its not that I did not try solving it and spent an hour on it, my mother language is not English so I don't think am understanding this question correctly, however the question would make perfect sense if the decrease was in the demand curve not the supply.. it is confusing me since a decrease in supply would result in increasing the price according to the law of supply and demand.. otherwise the whole question is not correct to begin with...
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #9

    Aug 29, 2015, 08:42 PM
    Tell us what you understand about it and why... tell us what you do know.
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