Question

. A) Imagine a market demand curve D1 and a market supply curve S1 for the...

. A) Imagine a market demand curve D1 and a market supply curve S1 for the product   

   “Houses". Explain what would happen to the price of houses and to the quantity demand for houses if demand for houses quickly increased to say D2? 4 Marks   

   B) Explain what would happen to the demand for "construction workers"?

.

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Answer :

A) Imagine a market demand curve D1 and a market supply curve S1 for the product   

   “Houses". Explain what would happen to the price of houses and to the quantity demand for houses if demand for houses quickly increased to say D2?

Graph :

If demand for houses quickly increased to say D2, then price for houses will increase from P1 to P2 as shown in figure and quantity demanded and supplied will also increase from Q1 to Q2.

B) Explain what would happen to the demand for "construction workers"?

As the quantity demanded and supplied will increase dur to shift in demand curve from D1 to D2, demand for construction workers will also increase as more construction workers will be required to fulfill the increased demand.

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