Page 99 - F1 - AB Integrated Workbook STUDENT 2018-19
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External analysis – economic factors




               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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