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