EC201/ EC202 Chapter 4 - Supply & Demand 15. According to the law of supply: ceteris paribus, 19. On the chart provided, demonstrate an the quantity supplied of a good will decrease when increase in supply and show the the price of that good 1 /+/> new equilibrium price and quantity. 16. What are the four factors that shift supply? 3.50 (1) 1 3.00 2.50 (2) T 2.00 (3) E 1.50 1.00 (4) N Q 25 50 75 100 125 17. On the chart provided, demonstrate an increase 20. On the chart provided, demonstrate an increase in demand and show the new equilibrium price and quantity. 3.50 3.00 2.50 2.00 1.50 1.00 18. On the chart provided, demonstrate an increase 25 50 75 100 125 and decrease in supply 21. A price above the market price results in a 3.50 equilibrium / shortage / surplus. 3.00 22. A price below the market price results in a 2.50 equilibrium / shortage / surplus. 2.00 23. Consider a market with no change in quantity 1.50 and an increase in prices, this is because of 1.00 1 / 4 / in demand and Q 1 / 4 / 4 in supply. 25 50 75 100 125 24. Consider a market with a no change in price and an increase in quantity, this is because of: 1 / 4 / in demand and 1 / 4/ 4in supply