Supply Graphing
Demand Graphing
Shifters
Price Floor
Price Ceiling
100
Assume you are in the almond market. Increased flooding throughout the summer causes lower yields. What happens to the supply of almonds?
Change in environmental conditions
Shift in
100
Assume you are in the pineapple market. The price of melon, a substitute, decreases in price. What happens to the demand for pineapples?
Change in price of substitutes
Shift out
100
Name the shifter & which curve it shifts: Assume you are in the Fireworks market. The day is February 16th.
Season, demand curve
100
A price floor is a government-imposed maximum/minimum price.
Minimum
100
Determine and draw the legal and illegal prices for a price ceiling
Legal - Below
Illegal - Above
200
Assume you are in the orange market. A freeze hits the citrus trees over the week. What happens to the supply of the oranges?
Change in the environmental condition
Shift in
200
Assume you are in the hot dog market. The price of hot dog buns decreases. What happens to the demand for hot dogs?
Change in the price of a complement
Shift out
200
Name the shifter & which curve it shifts: Assume you are in the grape market. The government imposes a subsidy for farmers who sell grapes.
Government intervention, supply curve
200
Determine and draw the legal and illegal prices for a price floor
Ilegal - Below
Legal - Above
200
A price ceiling is a government-imposed maximum/minimum price.
Maximum
300
Assume you are in the corn market. A new technology has been introduced that allows corn to be resistant to pests. What happens to the supply of corn?
Change in technology
Shift out
300
Assume you are in the iPhone market in Fresno, CA. 50,000 new citizens establish residencies in Fresno. What happens to the demand for iPhones?
Change in population
Shift out
300
Name the shifter & which curve it shifts: Assume you are in the almond market. Increased flooding throughout the summer causes lower yields.
Environmental conditions, supply curve
300
In order for a price floor to be effective, it must be above/below the equilibrium point?
Above
300
In order for a price ceiling to be effective, it must be above/below the equilibrium point?
Below
400
Assume you are in the almond market. The government adds additional taxes for all almond farmers. What happens to the supply of the almond market?
Change in government intervention - bad
Shift in
400
Assume you are in the used car market. Consumer income increases. What happens to the demand for used cars?
Change in income, inferior good
Shift in
400
Name the shifter & which curve it shifts: Assume you are in the used clothes market. Consumer income decreases.
Income, demand curve
400
What is the market result of a price floor?
Surplus, excess supply
400
What is the market result of a price ceiling?
Shortage, excess demand
500
Assume you are in the potato market. The price of water decreases. What happens to the supply of the potato market?
Change in price of inputs
Shift out
500
Assume you are in the Christmas tree market. The day is July 3rd. What happens to the demand for Christmas trees?
Season - wrong season
Shift in
500
Name the shifter & which curve it shifts: Assume you are in the strawberry market. The price of strawberry seeds increases.
Price of inputs, supply curve
500
Draw and explain each part of a graph with a price floor imposed.
500
Draw and explain each part of a graph with a price ceiling imposed.
