Page 31 - Krugmans Economics for AP Text Book_Neat

Clearly labeled graphs help to explain complex ideas

figure 5.3

A Movement Along the Demand Price of
Curve Versus a Shift of the coffee beans
Demand Curve (per pound) A shift of the
demand curve...
The rise in the quantity demanded when going
from point A to point B reflects a movement along $2.00
the demand curve: it is the result of a fall in the
price of the good. The rise in the quantity de- 1.75 ...isnotthe
manded when going from point A to point C A C
1.50 same thing as
reflects a change in demand: this shift to the right a movement along
is the result of a rise in the quantity demanded at the demand curve.
Figure 5.3 shows the 1.25
any given price.
difference between B
1.00
movement along the
demand curve and a 0.75
shift in demand,
0.50
providing a clear D 1 D 2
presentation of a
0 7 8.1 9.7 10 13 15 17
difficult topic.
Quantity of coffee beans
(billions of pounds)

figure 6.3

Movement Along the Price of
Supply Curve Versus coffee beans
Figure 6.3 in the following (per pound)
Shift of the Supply Curve
module illustrates the same $2.00 A movement S 1 S 2
The increase in quantity supplied when
concept for the supply curve along the supply
going from point A to point B reflects a
movement along the supply curve: it is 1.75 curve...
the result of a rise in the price of the
good. The increase in quantity supplied 1.50 B
when going from point A to point C re-
flects a change in supply: this shift to 1.25
the right is the result of an increase in A
the quantity supplied at any given price. 1.00 C
...isnotthe
0.75 same thing as
a shift of the
0.50 supply curve.
Color is used consistently
to distinguish between 0 7 10 11.2 12 15 17
demand (blue) and supply Quantity of coffee beans
(red) curves. (billions of pounds)

PREFACE xxix