BUSINESS PERSPECTIVE

Subject: ECONO

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MICS FROM A BUSINESS PERSPECTIVE

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Dead Line Nov- 3rd

Microeconomics Supply and Demand Exercise

Consider the initial effect of each of the following events on the underlined market. First indicate what the shifter is (i.e. for demand: number of buyers, price of related goods, etc and for supply: input prices, technology, etc.). Use an arrow to show whether there is an increase or decrease in demand (D), supply (S), equilibrium price (P) and equilibrium quantity (Q). Use  a “0” for no change. Use the space provided to graph the appropriate shifts or movements.  Be sure to label the axis, curves and equilibrium points.

Market/Event                                                     Graph                                 Shifter                         D  S  P  Q

1.  Ipad5: Research is published

That proves  Ipad5s cause cancer.

2. Ipad5: A new invention makes

Ipad5s  cheaper  to produce.

3. Ipad5: Tsunami in Japan and floods in Thailand

Hurt production of Ipad5s.

4. Beef:  The price of grass (cattle food) rises

Due to dry weather (drought).

5. Beef:  An outbreak of the disease

Listeria is linked to pork.

6.  Apples: The wages of apple pickers

Increase due to govt. legislation.

7.  World Wheat: World population is growing by

Over 2 million people per week.

8. World Wheat:  Weather destroys wheat crop in

Canada and the US.

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Files: Microeconomics_Supply_and_Demand_Exercise.docx
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