Outline four factors that may lead to an increase in the demand for commodity X.

Here are the solutions to your problems. 1. Outline four possible causes of a shift of the demand curve to the left. A shift of the demand curve to the left indicates a decrease in demand. a) A decrease in consumer income (for normal goods). b) An increase in the price of a complementary good. c) A decrease in the price of a substitute good. d) A change in consumer tastes or preferences away from the good. 2. Outline four factors that may cause the supply curve to shift to the right. A shift of the supply curve to the right indicates an increase in supply. a) A decrease in the cost of production (e.g., lower input prices). b) An improvement in technology that makes production more efficient. c) An increase in the number of sellers in the market. d) Favorable natural conditions (e.g., good weather for agricultural products). 3. Outline four factors that may lead to an increase in the demand for commodity X. An increase in demand means the demand curve shifts to the right. a) An increase in consumer income (for normal goods). b) A decrease in the price of a complementary good. c) An increase in the price of a substitute good. d) A change in consumer tastes or preferences towards the good. 4. Determine excess demand and excess supply from the combined demand and supply schedules. Step 1: Calculate Excess Demand (Quantity Demanded - Quantity Supplied) when Quantity Demanded > Quantity Supplied. Step 2: Calculate Excess Supply (Quantity Supplied - Quantity Demanded) when Quantity Supplied > Quantity Demanded. The completed table is: |c|c|c|c|c| Price & Quantity demanded & Quantity supplied & Excess demand & Excess supply \\ 1800 & 280 & 1400 & & 1120 \\ 1600 & 400 & 1200 & & 800 \\ 1400 & 500 & 900 & & 400 \\ 1200 & 650 & 650 & & \\ 1000 & 700 & 500 & 200 & \\ 800 & 850 & 420 & 430 & \\ 600 & 950 & 350 & 600 & \\ 400 & 1000 & 200 & 800 & \\ 5. State four effects of a shift of the demand curve to the right. A shift of the demand curve to the right indicates an increase in demand. a) The equilibrium price will increase. b) The equilibrium quantity will increase. c) There will be an initial shortage (excess demand) at the original equilibrium price. d) Producers will be incentivized to increase the quantity supplied due to higher prices. Got more? Send 'em.