List of Diagrams

There are lots of diagrams to be familar with in Economics. This section has a collection of video tutorials taking you through the drawing of the diagrams. Some assume that you understand key topics so make sure you read the description and watch them in the right order if you are unsure. There is a list of all the diagrams below you can click on or you can scroll down to see them all.

Diagram Clinic
Tuesday, 03 December 2013 11:41

Demand and Supply

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Demand and Supply
Demand and supply diagrams are the basic building blocks for Microeconomics. It is important that you are able to draw them confidently and understand how they work. Drawn with price (per unit) on the vertical axis, and quantity on the x axis, demand and supply diagrams show 2 things at…
Tuesday, 03 December 2013 12:05

Demand and Supply - The Impact of a Tax

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Demand and Supply - The Impact of a Tax
Many things can shift a demand or supply curve and students often get confused about which curve they should be shifting. There is, however an easy way to decide. Remember, the price does not change straight away, it changes because a change in demand or supply creates a shortage or…
Tuesday, 03 December 2013 16:52

Demand and Supply - Types of Tax

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Demand and Supply - Types of Tax
Direct taxes on income affect the demand curve as consumers have less money to spend, whereas indirect taxes on spending are charged to firms, increasing their costs and so affect the supply curve. They will, of course, pass some of this increase in costs on to consumers. It is important…
Wednesday, 05 March 2014 20:51

Maximum and Minimum Prices

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Maximum and Minimum Prices
Governments can intervene in a market in many ways. They usually do so because there is some form of market failure. The free market is creating too little of a good or too much and charging the wrong price. One way that governments can attempt to fix this is to…
Monday, 02 December 2013 11:12

Monopoly

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Monopoly
You need to be familiar with the diagrams for each type of market structure. Monopoly markets occur when one single firm dominates the market. Large firms with some competition can have a degree of monopoly power but when it comes to diagrammatic analysis we are interested in a situation where…
Wednesday, 05 March 2014 20:37

Oligopoly

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Oligopoly
You need to be familiar with the diagrams for each type of market structure. Oligopolies occur when there are a few large firms dominating the market. An example might be supermarkets or car manufacturers where four or five large firms dominate the market. Having a number of firms each with…
Monday, 02 December 2013 10:47

Perfect Competition

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Perfect Competition
You need to be familiar with the diagrams for each type of market structure. Perfect competition is the most competitive market structure and results in a market where all firms charge the same price and make only normal profits in the long run. This tutorial will talk you though drawing…
Monday, 02 December 2013 17:18

Perfect Competition and Supernormal Profit

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Perfect Competition and Supernormal Profit
Like any firm, perfectly competitive firms aim to profit maximise. Unlike other firms, the maximum amount of supernormal profit a perfectly competitive firm can make in the long run is zero. Supernormal or abnormal profit is any profit other than the payment you need to make to the entrepreneur for…
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