Demand and Supply Criss Cross Puzzle

Class 11 and Class 12

@Pankaj Bhanwani +919899971997

Topic Demand and Supply –Criss Cross

Lesson Development and Introduction

Movement along a demand curve

The amount of quantity demanded by the consumer changes with the rise and fall in the price of the commodity if other determinants of demand remain constant. This alternation in demand, when shown in the graph, is known as movement along a demand curve.

Movement along a demand curve can also be understood as the variation in quantity demanded of the commodity with the change in its price, ceteris paribus.

There can be two types of movement in a demand curve – extension and contraction.

Extension in a demand curve is caused when the demand for a commodity rises due to fall in price. And, contraction in demand curve is caused when the demand for a commodity falls due to rise in price

Shift in demand curve

The amount of commodity demanded by the consumers may change due to the effect of non-price factors as well. Non-price factors which influence demand for the commodity may be consumers’ income, the price of related goods, advertisement, climate and weather, the expectation of rise or fall in price in future, etc.

When the amount of commodity demanded changed due to non-price factors, there is no extension or contraction in the curve but the formation of the entirely new demand curve. As a result, demand curve shifts from its original position.

For an example, the demand for cold drinks in the market may increase substantially even at same price due to hot weather.

Movement along a supply curve

The amount of commodity supplied changes with rise and fall of the price while other determinants of supply remain constant. This change, when shown in the graph, is known as movement along a supply curve.

in simple words, movement along a supply curve represents the variation in quantity supplied of the commodity with a change in its price and other factors remaining unchanged.

The movement in supply curve can be of two types – extension and contraction. Extension in a supply curve is caused when there is an increase in the price or quantity supplied of the commodity while contraction is caused due to a decrease in the price or quantity supplied of the commodity

 

Shift in supply curve

The amount of commodity that the producers or suppliers are willing to offer at the marketplace can change even in cases when factors other than the price of the commodity change. Such non-price factors can be the cost of factors of production, tax rate, state of technology, natural factors, etc.

When the quantity of the commodity supplied changes due to change in non-price factors, the supply curve does not extend or contract but shifts entirely. For an instance, the introduction of improved technology in industries helps in reducing the cost of production and induces production of more units of a commodity at the same price. As a result, the quantity of commodity supplied increases but the price of the commodity remains as it is.

Activity to understand -Demand – Supply Expansion /Contraction , Increase/Decrease  Application

Initial Point	New Point	Demand	Supply
X	A	Increase – As you move from D1 to D2	Expansion-No change in supply curve only upward movemnt
X	B
X	I
X	F
X	E
X	D
X	G
A	B
A	I