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  • 1. Module 3A SUPPLY AND DEMAND CURVES OBJECTIVE: This program is designed to graphically illustrate the principle of supply and demand equilibrium, particularly how equilibrium changes when supply and demand curves change. INPUTS (will appear in blue): As constructed here, this module allows for two straight line demand and supply curves. 1) Up to ten prices should be entered in cells A32 to A41. 2) Demand curves: The demand curves are in the form q=a-bp. Two coefficients are required: a: The intercepts for the demand curves should be entered in cells D44 and D46. b: The slopes should be entered in cells F44 and F46. 3) Supply curves: The supply curves are in the form q=a+bp. Two coefficients are required: a: The intercepts for the supply curves should be entered in cells D49 and D51. b: The slopes should be entered in cells F49 and F51. GRAPH: A graph can be viewed by pressing GRAPH (located at the bottom of the screen). Sample data have been entered as an example. CASE 1 CASE 2 PRICE DEMAND SUPPLY DEMAND SUPPLY 0 50.0 10.0 60.0 20.0 1 45.0 15.0 55.0 25.0 2 40.0 20.0 50.0 30.0 3 35.0 25.0 45.0 35.0 4 30.0 30.0 40.0 40.0 5 25.0 35.0 35.0 45.0 6 20.0 40.0 30.0 50.0 7 15.0 45.0 25.0 55.0 8 10.0 50.0 20.0 60.0 9 5.0 55.0 15.0 65.0 DEMAND COEFFICIENTS: CURVE 1 a 50 b 5 CURVE 2 a 60 b 5 SUPPLY COEFFICIENTS:
  • 2. CURVE 1 a 10 b 5 CURVE 2 a 20 b 5
  • 3. Demand Vs Supply 10 9 8 7 6 Price 5 4 3 2 1 0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Quantity Column A Column A Column A Column A