Please draw these four graphs carefully as you would for a workplace memo. There are no equations or numbers in this exercise.
1. Demand increases; Supply increases. [Both curves move in the same direction.]
a. Demand increases more than Supply increases. (i.e. the D curve shifts more to the right than the Supply curve shifts to the right.)
b. Demand increases less than Supply increases.
2. Demand increases; Supply decreases. [Each curve moves in the opposite direction.]
a. Demand increases more than supply decreases.
b. Demand increases less than supply decreases.