Graphs
Supply Shifters
Price Controls
Equilibrium
Supply or Demand
100
What would happen if the demand curve shifted to the right?
Ep goes down, Eq goes down
100
What would happen to Supply if a Quota was placed?
It would go down
100
Price is below equilibrium.
Price Ceiling
100
Ep goes up, Eq goes down
Increase in Supply
100
Government Subsidizes a farmer.
Supply
200
What would happen if Demand went up?
Ep goes up, Eq goes up
200
What would happen to the supply of shoes if Nike dropped out of the shoe market?
Supply goes down
200
Protects businesses.
Price Floor
200
Ep goes down, Eq goes down
Decrease in demand
200
Consumers expect the price of apples to go down next week
Demand
300
What would happen if Supply went down?
Ep goes down, Eq goes up
300
What would happen to the supply of Phones if Apple upgrades their equipment to makes phones?
Supply goes up
300
Results in a surplus.
Price Floor
300
Ep goes down, Eq goes up
Increase in supply
300
Hurricane wipes out 50% of crops in Florida.
Supply