practicing supply and demand draw the curves, shift the one that is appropriate and determine the...

Practicing Supply and Demand

Draw the curves, shift the one that is appropriate and determine the effect

on price and quantity

G: heating oilS: coldest winter in 20 yearsR:

G: heating oilS: coldest winter in 20 yearsR: preferences

S

D

Price

Quantity

D1

P1

P2

Q1 Q2

G: Domestic oilS: Hurricane devastates U.S. Gulf Coast

G: Domestic oilS: Hurricane devastates U.S. Gulf CoastR: Number of Sellers

S1

D

Price

Quantity

P1

P2

Q1Q2

S2

G: Nintendo WiiS: Becomes the Must-Have-Game System during DecemberR:

G: Nintendo WiiS: Becomes the Must-Have-Game System during DecemberR: preferences

S

D

Price

Quantity

D1

P1

P2

Q1 Q2

G: Sony PS3S: Manufacturing Plants suffer breakdownsR:

G: Sony PS3S: Manufacturing plants suffer breakdownsR: technology

S1

D

Price

Quantity

P1

P2

Q1Q2

S2

G: Housing in Southern CaliforniaS: 1 million new people immigrate to CaliforniaR:

G: Housing in Southern CaliforniaS: 1 million new people immigrate to CaliforniaR: number of buyers

S

D

Price

Quantity

D1

P1

P2

Q1 Q2

G: Indianapolis Colts TicketsS: Colts go to the ChampionshipsR:Note: a Fixed Supply curve

G: Indianapolis Colts TicketsS: Colts go to the ChampionshipsR: preferencesNote: a Fixed Supply curve

S

D

Price

Quantity

D1

P1

P2

Q1

G: Chicago Bears JerseysS: Bears win the Super BowlR:

G: Chicago Bears JerseysS: Bears win the Super BowlR: preferences

S

D

Price

Quantity

D1

P1

P2

Q1 Q2

G: Hotel Rooms in CancunS: Spring BreakR:Note: fixed Supply curve

G: Hotel Rooms in CancunS: Spring BreakR: preferences/ number of buyersNote: fixed Supply curve

S

D

Price

Quantity

D1

P1

P2

Q1

G: Baseball MittsS: Trade agreement with Vietnam removes import quotas on goods made in VietnamR:

G: Baseball MittsS: Trade agreement with Vietnam removes import quotas on goods made in VietnamR: govt restrictions

S1

D

Price

Quantity

P1

P2

Q1 Q2

S2

G: CD PlayersS: iPodR

G: CD PlayersS: iPodR: substitutes

S

DPrice

Quantity

D1

P1

P2

Q1Q2

G: SUVsS: Gas hits $5.00 a gallonR:

G: SUVsS: Gas hits $5.00 a gallonR: complements

S

DPrice

Quantity

D1

P1

P2

Q1Q2

G: Britney Spears cdS: Britney gains 100 pounds

G: Britney Spears cdS: Britney gains 100 poundsR: preferences

S

DPrice

Quantity

D1

P1

P2

Q1Q2

G: DiapersS: Baby BoomR:

G: DiapersS: Baby BoomR: number of buyers

S

D

Price

Quantity

D1

P1

P2

Q1 Q2

G: BeefS: Mad Cow DiseaseR:

G: BeefS: Mad Cow DiseaseR: preferences

S

DPrice

Quantity

D1

P1

P2

Q1Q2

G: ChickenS: Mad Cow DiseaseR: 

G: ChickenS: Mad Cow DiseaseR: substitutes 

S

D

Price

Quantity

D1

P1

P2

Q1 Q2

G: Krispy Kreme DonutsS: Low Carb Craze sweeps nationR:

G: Krispy Kreme DonutsS: Low Carb Craze sweeps nationR: preferences

S

DPrice

Quantity

D1

P1

P2

Q1Q2

G: AutomobilesS: Government requires seat belts, air bagsR:

G: AutomobilesS: Government requires seat belts, air bagsR: govt. restrictions

S1

D

Price

Quantity

P1

P2

Q1Q2

S2

G: Flu VaccinesS: Government provides vaccine makers tax breaksR:

G: Flu VaccinesS: Government provides vaccine makers tax breaksR: subsidies

S1

D

Price

Quantity

P1

P2

Q1 Q2

S2

G: Agricultural Crops (i.e. lettuce, grapes, etc.)S: Agricultural workers strike and receive a raiseR:

G: Agricultural Crops (i.e. lettuce, grapes, etc.)S: Agricultural workers strike and receive a raiseR: inputs

S1

D

Price

Quantity

P1

P2

Q1Q2

S2

G: Dairy ProductsS: Hormones that increase dairy milk production developed R: 

G: Dairy ProductsS: Hormones that increase dairy milk production developed R: technology 

S1

D

Price

Quantity

P1

P2

Q1 Q2

S2

G: California WineS: 50 new vineyards open in the Napa ValleyR:

G: California WineS: 50 new vineyards open in the Napa ValleyR: number of sellers

S1

D

Price

Quantity

P1

P2

Q1 Q2

S2

G: French CheesesS: Tariff imposed in French agricultural productsR:

G: French CheesesS: Tariff imposed in French agricultural productsR: govt. restrictions

S1

D

Price

Quantity

P1

P2

Q1Q2

S2