Transcript Econ Markets Supply & Demand Graphing

Supply & Demand Graphing
Analysis of changes in S & D
Guiding Questions
Draw & Label this
graph!
Then draw one for
each of the following
scenarios…
Before drawing graphs, ask yourself these questions to guide
your thinking:
Is there a 3rd variable causing a shift in S or D?
•
Does the shift affect primarily S or D?
•
Does the shift cause an increase or a decrease( L or R)?
Market: Plywood
Factor # 1: Hurricane Approaches
Factor # 2: All power out after
hurricane within 100 miles.
1. a market graph and draw the
appropriate shifts in Supply &
Demand
2. Explain what happens to price &
quantity?
2012 Toyota Prius Hybrid
Factor # 1: Car & Driver Mag says it gets
55 MPG
Factor # 2: Toyota signs a labor
agreement raising wages 5%
1.Construct a market graph and draw the
appropriate shifts in Supply & Demand
2.Explain what happens to price &
quantity?
Burger King Food
Factor # 1: 20% Excise tax placed on
producers of fatty fast foods
Factor # 2: New apartments and
condo’s just opened next door
1.Construct a market graph and draw the
appropriate shifts in Supply & Demand
2.Explain what happens to price &
quantity?
Skittles
Factor # 1: Price of Starbursts
decreases by 50%
Factor # 2: Price of sugar increases by
10%
1.Construct a market graph and draw the
appropriate shifts in Supply & Demand
2.Explain what happens to price &
quantity?
Little Caesars Large Pizza
Factor # 1: Surrounding area reports of
10% greater income this year
Factor # 2: Price of sauce increases as
tomatoes freeze
1.Construct a market graph and draw the
appropriate shifts in Supply & Demand
2.Explain what happens to price &
quantity?
Schwan’s Specialty Ice Cream
Factor # 1: Michigan goes into a deep
recession
Factor # 2: Milk prices rise due to MAD
COW DISEASE
1.Construct a market graph and draw the
appropriate shifts in Supply & Demand
2.Explain what happens to price &
quantity?