Answer:
1) When the demand curve shifts to the left, what is this called?
DECREASE IN DEMAND: when the demand curve shifts to the left the whole demand will decrease at every given price.
2) On a supply and demand graph, if the demand curve shifts to the left, what would be the resulting effect on equilibrium price and quantity?
BOTH THE EQUILIBRIUM PRICE AND THE EQUILIBRIUM QUANTITY WILL DECREASE: when the demand curve shifts to the left, the quantity demanded will decrease at every given price, resulting in a decrease of the equilibrium price and equilibrium quantity.
3) Input costs (Rising costs and technology) SHIFT THE SUPPLY CURVE TO THE LEFT, DECREASING THE QUANTITY SUPPLIED AND QUANTITY DEMANDED, AND INCREASING THE EQUILIBRIUM PRICE.
Subsidies
: SHIFT THE SUPPLY CURVE TO THE RIGHT, INCREASING THE QUANTITY SUPPLIED AND DEMANDED, AND DECREASING THE EQUILIBRIUM PRICE.
Taxes and Regulations
: HIGHER TAXES AND REGULATIONS WILL SHIFT THE SUPPLY CURVE TO THE LEFT, DECREASING THE QUANTITY SUPPLIED AND DEMANDED, AND INCREASING THE EQUILIBRIUM PRICE.
Future expectation of prices: IF SUPPLIERS BELIEVE THAT THE PRICE WILL INCREASE IN THE FUTURE, FIRST THEY WILL DECREASE THE CURRENT QUANTITY SUPPLIED BUT THEY WILL PREPARE THEMSELVES TO INCREASE THE QUANTITY SUPPLIED.
