Transcript Jeopardy Review Game

Unit 3 – Supply and Demand: Elaboration
JEOPARDY
Categories
Terms / Concepts
Shifts
Shifts 2
Equilibrium
Equilibrium 2
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Minimum wage is an
example of this
Rent control is an
example of this
 What happens when
Demand and Supply both
increase?
 Which price control leads
to a shortage?
 When is it possible to
determine what happens
to PRICE and QUANTITY
when supply and
demand both shift?
 Incomes increase
 Price of resources falls
 RESULT?
 Incomes increase
(inferior good)
 Price of resources falls
 RESULT?
 Population decreases
 Technology improves
 RESULT?
 Price of Sub good
increases (D)
 Price of Sub good
decreases (S)
 RESULT?
 Number of suppliers
increases
 Price of complementary
good decreases
 RESULT?
 Market: orange juice
 Freeze in Florida
 Increase price Apple
Juice
 RESULT?
 Market: cigarettes
 Anti-smoking policy
 Increase cost of tobacco
(used to make cigarettes)
 RESULT?
 Market: Beer
 Legal drinking age increased
 Lowered cost of production
of beer
 RESULT?
 Market: eyeglasses
 Cost of producing lenses
falls
 Eyeglasses in fashion now
 RESULT?
 Market: Pencils
 All tests now done on
Scantrons
 Price of wood increases
 RESULT?
What is initial equilibrium?
Pepsi
Now, there is a price floor $1
different from equilibrium.
What
Pepsi
is the result? How much?
Now, there is a price
ceiling $1 different from
equilibrium. What is the
result? How much?
Demand and Supply have
shifted. What is new
equilibrium? How much are
consumers spending at this
new equilibrium?
After the shifts, government
imposes a price ceiling
$0.50 different from
equilibrium. What results?
Look at initial curves: at a
price of $3, what occurs?
What is the quantity value?
Look at initial curves:
at a price of $3, what
is the dollar value of
the shortage / surplus?
Look at the new equilibrium:
what occurs at an imposed
price of $1? What is the
quantity value?
Look at the new equilibrium:
at an imposed price of $1,
what can the government do
to take care of the
resulting situation? (ALL
options)
 Illustrate using a graph, how
a change in the SAME
DIRECTION of the supply
and demand curves
produces the following:
 Price Increases, quantity
decreases