Transcript Show, using a fully labeled graph, what would happen to demand

Graph showing effect on the Fizzy
Drinks market when advertising
increases.
Orginally the market equilibrium is
at 50c (price) and 10 (quantity)
Advertising convinces the market
to buy more
So now even though there is no
change in prices (still 50c) –
demand has increased to 15
$
(a) Possibly shortage (of 5 ) exists if
the market cannot supply that extra
quantity. –
B
C
in this case price will rise (aprox 60)
and as it does ‘demand will fall &
supply will rise (aprox 13)’ to
Equilbrium point B
Qty
Or (b) Suppliers will react to the
changed market and be prepared to
supply more at the same price (S1) to
give Equilibrium point C
Graph showing effect on the
Jewellery market when recessions
hits
Orginally the market equilibrium is
at 20 (price) and 100 (quantity)
Recession means people buy
less luxuries
So now even though there is no
change in prices (still 20) –
demand has decreased to 70
$
(a) Possibly surplus (of 30 ) exists if
no suppliers immediatly quit the
market
C
in this case price will fall (aprox 16)
and as it does demand will rise &
supply will fall (aprox 85) to
Equilbrium point B
B
Qty
Or (b) Suppliers will react immedialty
& stop excess production – leaving
less supply but unchanged price - to
give Equilibrium point C
Show, using a fully
labeled graph, what would
happen to demand for
bottled water, following an
announcement on TV that
a hurricane was about to
hit