Demand and Supply General
Supply Shifters
Demand Shifters
Banana Game
San Francisco Facts
100
For a seller, how do you calculate their profit? (think about the banana game. The two things that matter are the price of the good and production cost)
Price of the good - Production cost = profit.
100
If sugar and flour become more expensive, what will happen to natalie's cookies and why?
Increase cost of inputs = decrease supply
100
Which term would relate to two similar goods, and when the price of one goes up people replace it with another?
Changes in price of substitute goods
100
What is price called if Supply and Demand meet "naturally"
The Equilibrium price
100
Estimate the population of San Francisco! (Chicago = 3 mil)
1 mil
200
What happens to quantity demanded as price increases?
Less quantity demanded (that's the law of demand)
200
If producers expect to be able to sell for more money next year, what will happen and why?
Decrease supply now -> change in producer expectations
200
Which term means that more people come to a specific place to buy things? (such as a special vacation town that gets extra people during the summer)
Change in number of consumers
200
At this price floor, is price being set below or above the equilibrium?
Price Floor = price above equilibrium
200
What's the name of the iconic reddish bridge next to San Francisco?
Golden Gate
300
What happens to quantity supplied as price increases?
More quantity supplied (that's the law of supply)
300
Which term relates to new companies deciding to produce a product that already exists?
Change in number of producers (increases supply)
300
Which term describes people losing their jobs and being unable to pay their bills, therefore decreasing demand?
Changes in income
300
At this price floor will we have a surplus (too much supply) or a shortage (too much demand) and how do you know?
We will have a surplus at a price floor, Quantity supplied > Quantity Demanded
300
What state is San Francisco in?
California
400
If the price of a good itself decreases, does this increase supply / demand or do we move along the existing supply curve
This answer is weird but if price increases or decreases, we move along the existing demand and supply curve (we do not draw a new supply curve). In order to draw a new supply or demand curve we must meet one of the specific conditions of supply and demand shifters in our packets.
400
Which term relates to new machines replacing workers, and being able to produce goods more effeciently?
Changes in technology
400
Which term describes that people suddenly like new things and want to buy them more?
Change in consumer taste and preferences (usually comes from advertising)
400
Is this price ceiling price above or below the equilibrium, and how do you know?
The price ceiling price is always below the equilibrium
400
Which ocean does San Francisco touch?
The Pacific ocean
500
Each group will get a whiteboard. The first group to draw a correct and well labeled supply and demand graph (axes labeled as well) with the equilibrium price from our banana game labeled correctly will get the points
Answers depending on whiteboards
500
Which term relates to a subsidy (congress deciding to give extra money to companies in a specific industry, such as renewable energy)?
Changes in government policy (in this case increasing supply
500
Which term means that if one product increases in price, the demand for another product that works together with that thing will go DOWN
Changes in price of complementary goods (think computers and computer chips)
500
Will we have a suprlus (extra supply) or shortage (extra demand) in this situation, and how do you know?
Shortage (more quantity demanded than quantity supplied)
500
Name 2 sports teams from San Francisco
49ers, Warriors, SF Giants (Baseball)