Transcript Supply & Demand Graphing

Supply & Demand Graphing
Analysis of changes in S & D
HINT: Get out the supply & demand shift
worksheets and the reasons for shifts. This will be
helpful.
Steps to Solve Scenario
Ask these questions (in this order) of yourself for
each factor as you solve:
1: Is this a 3rd variable in the equation?
2. If it is, does it primarily affect supply or demand?
3. Is it an increase or decrease?
Market: Plywood
Factor # 1: Hurricane approaches and is
threatening just off the coast
Factor # 2: Terrorists use a computer virus
which destroys plywood making software
1. Construct a market graph and draw the
appropriate shifts in Supply & Demand
2. Explain what happens to price & quantity?
2005 Toyota Prius Hybrid
Factor # 1: Car & Driver Mag says it gets 55
MPG
Factor # 2: Toyota signs a labor agreement
cutting wages 5%
1. Construct a market graph and draw the
appropriate shifts in Supply & Demand
2. Explain what happens to price & quantity?
Logan’s Roadhouse Food TODAY
Factor # 1: 5 new restaurants open within
a mile of Logan’s last month
Factor # 2: Logan’s promotion of buy one
get one lunch for free starts tomorrow.
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?
Burger King’s new full pound burger
Factor # 1: New large condos and
apartments are both built next door
Factor # 2: Government places an excise
tax on excessively fatty foods
1. Construct a market graph and draw the
appropriate shifts in Supply & Demand
2. Explain what happens to price & quantity?
Market: Ice Cream
Factor # 1: Weekly forecast shows record high
temps and clear skies
Factor # 2: Report of greater ice cream demand
is in the USA Today
1. Construct a market graph and draw the
appropriate shifts in Supply & Demand
2. Explain what happens to price & quantity?