Supply & Demand Curves – AP Microeconomics | ShowMeClass

S&D

Supply & Demand Curves

AP Microeconomics · Unit 2: Supply & Demand

Learning Objectives

Graph supply & demand curves

Find equilibrium price & quantity

Identify consumer & producer surplus

Analyze shifts and price controls

Key Concepts

Demand: P = a − bQ_d
Supply: P = c + dQ_s
Equilibrium: Q_d = Q_s

Consumer surplus: area above P*, below D
Producer surplus: area below P*, above S

Shift Factors

Demand shifts: income, preferences, substitutes, complements, expectations

Supply shifts: input costs, technology, taxes/subsidies, # of sellers

Colors

Demand curve

Supply curve

Consumer surplus

Producer surplus

Equilibrium

SupplyDemandEquilibrium

P*:-

Q*:-

Market:-

Consumer Surplus

-

area above P*, below D

Producer Surplus

-

area below P*, above S

Total Surplus

-

CS + PS

Deadweight Loss

-

inefficiency

Demand Curve

Demand Intercept (a) 100

Demand Slope (b) 1.0

Demand Shift 0

Supply Curve

Supply Intercept (c) 10

Supply Slope (d) 1.0

Supply Shift 0

Price Controls

Type

Control Price 50

Display

Market Analysis

Quick Quiz▼

1. At equilibrium:

Qd > Qs (shortage) Qd = Qs Qd < Qs (surplus) Price is maximized

2. A binding price ceiling causes:

A surplus A shortage No change Higher prices

3. An increase in demand shifts the demand curve:

Left Right Down along the curve Up along the curve