Price
Demand
Supply
Graphing :)
200
What is it called when QD > QS?
Shortage!
200
Draw a demand curve!
200
Draw a supply curve!
200
For the following question, answer the following.
The new iPhone 11 is released. What happens to the demand for iPhone 11 cases?
a. The changes to price, supply, or demand
b. The determinant
c. What happens to equilibrium price and quantity?
d. Graph!
Demand increases, Related goods, Price increases and Quantity increases.
300
What is it called when price rises and Qs>Qd?
Surplus!
300
What is the law of demand?
The law of demand states that as price increases (or decreases), quantity demanded will decrease (or increase).
300
What does the law of supply state?
The law of supply states that as price decreases (or increases), quantity supplied will decrease (or increase).
300
For the following question, answer the following.
The United States wants to encourage alternate fuel production, as a result President Bush decided to subsidize corn farmers in order to increase ethanol production. What happens to the supply of corn?
a. The changes to price, supply, or demand
b. The determinant
c. What happens to equilibrium price and quantity?
d. Graph!
Supply increases, Subsidy and Taxes, P decreases and Q increases.
400
Draw a graph of a price ceiling!
A price ceiling is maximum price designed to help consumers. It happens below equilibrium.
400
On two separate graphs, show an increase and a decrease in demand.
Increase in Demand:
Decrease in Demand:
400
On two separate graphs, show an increase and a supply in demand.
An increase in Supply:
Decrease in Supply:
400
For the following question, answer the following.
Old Navy has decided to put their t-shirts on sale. This lowers the price from $10 to $5 a shirt. What happens to t-shirts?
a. The changes to price, supply, or demand
b. The determinant
c. What happens to equilibrium price and quantity?
d. Graph!
Price decreases, Price, Price decreases while Qs decreases and Qd increases (Shortage).
500
Describe a price floor and draw a graph for it!
A price floor is a minimum price set to help producers. This raises prices above equilibrium.
500
Give an example or keyword of each demand determinant!
Taste & Pref - A new study shows!
Income - Mr. Tran gets a raise!
Market Size - There are more students at Cy Falls!
Expectations of Consumers - There will be a sale after thanksgiving
Related Goods - Iphone vs. Pixel, Peanut Butter and Jelly
500
Give an example or keyword of each supply determinant!
Subsidy & Taxes - Government taxes or subsidy!
Technology - Robots, automation
Other related goods - Profits of another good!
Number of sellers - More/less producers!
Expectations of sellers - Price will rise or fall in the future!
Resource Prices - Price of tomatoes for pizza!
500
For the following question, answer the following.
Due to economic conditions, the price of lumber has increased. What happens to the supply of houses?
a. The changes to price, supply, or demand
b. The determinant
c. What happens to equilibrium price and quantity?
d. Graph!
Supply decreases, Resource Prices, P increases and Q decreases.
