1. PRODUCTION POSSIBILITY CURVE
2. The Demand Curve
i. Straight Line
ii. Curve
,3. Change in Quantity Demanded
• When the demand for a commodity changes because of the change in its
price, and other factors remaining constant it is called ‘change in quantity
demanded’.
• A fall in price leads to Expansion in demand
• A rise in price leads to Contraction in demand
4. Change in Demand
• When the change in demand is due to the factors other than its price it is
called ‘change in demand’.
• Change in demand may take two forms:
(i) Increase in demand
➢ Means more quantity is demanded at the same price due to
factors other than price.
➢ Shown by a rightward shift of the demand curve
(ii) Decrease in demand
➢ Means less quantity is demanded at the same price due to
factors other than price.
➢ Shown by a leftward shift of the demand curve.
, 5. The Supply Curve
• It shown the relationship between price and quantity supplied of a
commodity.
• Supply curve slopes upward from left to right, showing that higher price
leads to higher quantity supplied.
• Quantity supplied may be zero at zero price, but it increases as price rises.
6. Changes in Quantity Supplied
• If there is a change in the price of a commodity and the other factors remaining
constant, it is termed as Change in quantity supplied.
• When price falls and quantity supplied falls, it is called Contraction in supply.
• When price rises and quantity supplied rises, it is called Extension of supply.
2. The Demand Curve
i. Straight Line
ii. Curve
,3. Change in Quantity Demanded
• When the demand for a commodity changes because of the change in its
price, and other factors remaining constant it is called ‘change in quantity
demanded’.
• A fall in price leads to Expansion in demand
• A rise in price leads to Contraction in demand
4. Change in Demand
• When the change in demand is due to the factors other than its price it is
called ‘change in demand’.
• Change in demand may take two forms:
(i) Increase in demand
➢ Means more quantity is demanded at the same price due to
factors other than price.
➢ Shown by a rightward shift of the demand curve
(ii) Decrease in demand
➢ Means less quantity is demanded at the same price due to
factors other than price.
➢ Shown by a leftward shift of the demand curve.
, 5. The Supply Curve
• It shown the relationship between price and quantity supplied of a
commodity.
• Supply curve slopes upward from left to right, showing that higher price
leads to higher quantity supplied.
• Quantity supplied may be zero at zero price, but it increases as price rises.
6. Changes in Quantity Supplied
• If there is a change in the price of a commodity and the other factors remaining
constant, it is termed as Change in quantity supplied.
• When price falls and quantity supplied falls, it is called Contraction in supply.
• When price rises and quantity supplied rises, it is called Extension of supply.
