Practicing Supply and Demand

1
Practicing Supply and Demand

• Draw the curves, shift the one that is
  appropriate and determine the effect on price and
  quantity

2
G heating oilS coldest winter in 20 yearsR
3
G heating oilS coldest winter in 20
yearsR preferences
S
P2
P1
Price
D1
D
Q1
Q2
Quantity
4
G Domestic oilS Hurricane devastates U.S.
Gulf Coast
5
G Domestic oilS Hurricane devastates U.S. Gulf
CoastR Number of Sellers
S2
S1
P2
Price
P1
D
Q2
Q1
Quantity
6
G Nintendo WiiS Becomes the Must-Have-Game
System during DecemberR
7
G Nintendo WiiS Becomes the Must-Have-Game
System during DecemberR preferences
S
P2
P1
Price
D1
D
Q1
Q2
Quantity
8
G Sony PS3S Manufacturing Plants suffer
breakdownsR
9
G Sony PS3S Manufacturing plants suffer
breakdownsR technology
S2
S1
P2
Price
P1
D
Q2
Q1
Quantity
10
G Housing in Southern CaliforniaS 1 million
new people immigrate to CaliforniaR
11
G Housing in Southern CaliforniaS 1 million
new people immigrate to CaliforniaR
number of buyers
S
P2
P1
Price
D1
D
Q1
Q2
Quantity
12
G Indianapolis Colts TicketsS Colts go to the
ChampionshipsR Note a Fixed Supply curve
13
G Indianapolis Colts TicketsS Colts go to the
ChampionshipsR preferencesNote a Fixed Supply
curve
S
P2
P1
Price
D1
D
Q1
Quantity
14
G Chicago Bears JerseysS Bears win the Super
BowlR
15
G Chicago Bears JerseysS Bears win the Super
BowlR preferences
S
P2
P1
Price
D1
D
Q1
Q2
Quantity
16
G Hotel Rooms in CancunS Spring
BreakR Note fixed Supply curve
17
G Hotel Rooms in CancunS Spring
BreakR preferences/ number of buyersNote
fixed Supply curve
S
P2
P1
Price
D1
D
Q1
Quantity
18
G Baseball MittsS Trade agreement with Vietnam
removes import quotas on goods
made in VietnamR
19
G Baseball MittsS Trade agreement with Vietnam
removes import quotas on goods made
in VietnamR govt restrictions
S1
S2
P1
Price
P2
D
Q1
Q2
Quantity
20
G CD PlayersS iPodR
21
G CD PlayersS iPodR substitutes
S
P1
P2
Price
D
D1
Q2
Q1
Quantity
22
G SUVsS Gas hits 5.00 a gallonR
23
G SUVsS Gas hits 5.00 a gallonR
complements
S
P1
P2
Price
D
D1
Q2
Q1
Quantity
24
G Britney Spears cdS Britney gains 100 pounds
25
G Britney Spears cdS Britney gains 100
poundsR preferences
S
P1
P2
Price
D
D1
Q2
Q1
Quantity
26
G DiapersS Baby BoomR
27
G DiapersS Baby BoomR number of buyers
S
P2
P1
Price
D1
D
Q1
Q2
Quantity
28
G BeefS Mad Cow DiseaseR
29
G BeefS Mad Cow DiseaseR preferences
S
P1
P2
Price
D
D1
Q2
Q1
Quantity
30
G ChickenS Mad Cow DiseaseR 
31
G ChickenS Mad Cow DiseaseR substitutes 
S
P2
P1
Price
D1
D
Q1
Q2
Quantity
32
G Krispy Kreme DonutsS Low Carb Craze sweeps
nationR
33
G Krispy Kreme DonutsS Low Carb Craze sweeps
nationR preferences
S
P1
P2
Price
D
D1
Q2
Q1
Quantity
34
G AutomobilesS Government requires seat belts,
air bagsR
35
G AutomobilesS Government requires seat belts,
air bagsR govt. restrictions
S2
S1
P2
Price
P1
D
Q2
Q1
Quantity
36
G Flu VaccinesS Government provides vaccine
makers tax breaksR
37
G Flu VaccinesS Government provides vaccine
makers tax breaksR subsidies
S1
S2
P1
Price
P2
D
Q1
Q2
Quantity
38
G Agricultural Crops (i.e. lettuce,
grapes, etc.)S Agricultural workers strike and
receive a raiseR
39
G Agricultural Crops (i.e. lettuce,
grapes, etc.)S Agricultural workers strike and
receive a raiseR inputs
S2
S1
P2
Price
P1
D
Q2
Q1
Quantity
40
G Dairy ProductsS Hormones that increase dairy
milk production developed R  
41
G Dairy ProductsS Hormones that increase dairy
milk production developed
R technology 
S1
S2
P1
Price
P2
D
Q1
Q2
Quantity
42
G California WineS 50 new vineyards open in
the Napa ValleyR
43
G California WineS 50 new vineyards open in
the Napa ValleyR number of sellers
S1
S2
P1
Price
P2
D
Q1
Q2
Quantity
44
G French CheesesS Tariff imposed in French
agricultural productsR
45
G French CheesesS Tariff imposed in French
agricultural productsR govt.
restrictions
S2
S1
P2
Price
P1
D
Q2
Q1
Quantity