The mini case study on Venezuela discusses two opposing views of how the

shortage of toilet rolls has arisen – because of excess demand or because of

reduced supply. Show both of these on demand and supply diagrams. What

possible solutions are there in each case?


 Considering the market for CDs, show the effects of the following changes using

demand and supply diagrams:

(a) an increase in the number of people owning CD players;

(b) a fall in the cost of producing CDs;

(c) an increase in the number of people downloading music to mobile devices.

 Have the changes you predicted in your answers to question 2 actually

happened in the real world? If not, why not?