Explaining the different shapes on demand / supply curve

LaFleur · 06-04-2010 02:51PM #1

Am I right if I was asked this question, it would be about whether the curve was horizontal / vertical etc and if a product was elastic perfectly, elastic or inelastic etc? or am i totally off?

Thanks.

06-04-2010 02:53PM

You might want to go into more detail, taking the case of a flat / steep demand / supply curve and putting up what you think they mean in terms of elasticity.

Économiste Monétaire · 06-04-2010 02:53PM

Do you mean the slope of the demand and supply curves?

LaFleur · 06-04-2010 03:05PM

Économiste Monétaire wrote: »

Do you mean the slope of the demand and supply curves?

The question asked was explain the different "shapes" of the demand curve and supply curve. So from that i am guessing what i mentioned above. I wasnt sure myself, hence why i asked what you guys thought...

Économiste Monétaire · 06-04-2010 03:19PM

The slope of supply and demand curves is a representation of their respective price elasticities. Draw them out separately and simulate a change in price (movement along the curve): is there a large or small change in quantity?

LaFleur · 06-04-2010 03:30PM

Économiste Monétaire wrote: »

The slope of supply and demand curves is a representation of their respective price elasticities. Draw them out separately and simulate a change in price (movement along the curve): is there a large or small change in quantity?

Thank you for the reply Économiste Monétaire. I have no data for the question. It's just a question to test what i know about the subject. I am just afriad the way the question is asked i.e. "Explain the different shapes of the demand curve" is leaving a little clueless in what i am actually being asked to define. Is it as you suggest a movement or is it about elastic / inelastic / perfectly inelastic etc.... hmmmmmmm

06-04-2010 03:36PM

You don't need data to answer the question.

take hypothetical cases, then put up what you think is happening. We'll tell you if you are right or wrong.

Flamed Diving · 06-04-2010 03:36PM

I'd imagine it means vertical (insensitive to p), horizontal (insensitive to q) and everything in between.

Économiste Monétaire · 06-04-2010 03:44PM

LaFleur wrote: »

Thank you for the reply Économiste Monétaire. I have no data for the question. It's just a question to test what i know about the subject. I am just afriad the way the question is asked i.e. "Explain the different shapes of the demand curve" is leaving a little clueless in what i am actually being asked to define. Is it as you suggest a movement or is it about elastic / inelastic / perfectly inelastic etc.... hmmmmmmm

Look at this graph:

Would you say this demand curve is elastic, unitary or inelastic w.r.t prices?

Now this graph:

Same question.

Time Magazine · 06-04-2010 03:47PM

Don't forget backward-bending supply curves too, depending on what level you're at.

LaFleur · 06-04-2010 04:00PM

Thanks guys. I'm doing 1st year economics through distance learning. I feel i understand what the question is asking. It goes back to looking at my understanding of the curves as Économiste Monétaire put it...is it elastic, unitary or inelastic etc...

I suppose in terms of answering the question, i would go into detail on why or how a demand curved is a certain way... and its values too.

Thanks again !

Explaining the different shapes on demand / supply curve

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