Page 106 - Microsoft Word - 00 ACCA F1 Notes Prelims.docx

Chapter 7

5.2 Shifts in supply/demand

 Changes in supply/demand result in new equilibrium price

 In exam questions consider whether it is the supply curve or the demand curve
that is moving and in which direction/

 Example – a good tea harvest will result in lower prices

P D S 1 S 2

P 1
P 2

Q 1 Q 2 Q

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