Graph Progression I- ECON 202

-Rekha Rai
 Interior paint market
(Home and commercial consumers)

$50

$40
Price

$30

$20

X
100 200 300 400
Quantity Gallons (in thousands)
 Interior paint market
(Home and commercial consumers)

$50 S

$40
Price

$30

$20
D
X
100 200 300 400
Quantity Gallons (in thousands)
 Interior paint market
(Home and commercial consumers)

$50 S

$40
Price
e1
$30

$20
D
X
100 200 300 400
Quantity Gallons (in thousands)
 Interior paint market
(Home and commercial consumers)

Y
* Assuming everything else

S1 remains same, an increase in

$50 S
the cost of labor would
$40 increase the production cost.
Price
e1
$30 In this case, the supply curve
(S) will shift to the left (S1)
$20
D reflecting the increased cost
X of production.
100 200 300 400
Quantity Gallons (in thousands)
 Interior paint market
(Home and commercial consumers)

Y
* As a result, the equilibrium

S1 price will go up and the

$50 S
equilibrium quantity will go
$40 e2 down as shown by the new
Price
e1
$30 equilibrium (e2) in the graph.

$20
D
X
100 200 300 400
Quantity Gallons (in thousands)
 Interior paint market
(Home and commercial consumers)

Y
* Assuming everything else

S1 remains same, decrease in the

$50 S
price of paint brush would
$40 decrease the supply. In this
Price
e1
$30 case, the supply curve (S)
will shift to the left (S1)
$20
D reflecting the decrease in
X supply.
100 200 300 400
Quantity Gallons (in thousands)
 Interior paint market
(Home and commercial consumers)

Y
* An increase in the price of

S1 raw materials, will increase

$50 S
the cost of production for
$40 paint. In this case, the supply
Price
e1
$30 curve (S) will shift to the left
(S1) reflecting the increase in
$20
D production cost.
X
100 200 300 400
Quantity Gallons (in thousands)