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GR Apwgraph Answers
GR Apwgraph Answers
CHAPTER 6, SECTION 1
Outlining Activity
Look through the chapter for an overview of the material. Pay attention to the main topics in the
book. As you scan each section of the book, fill in the missing words in the following outline.
I. Moving to Equilibrium
equilibrium
A. At equilibrium, the quantity of a good that is bought and sold is the ______________________
equilibrium
quantity and the price at which the good is bought and sold is the ______________________
price.
falls
B. Price ______________________
when a surplus exists.
beyond
1. With a surplus, suppliers will have inventories ______________________
the level they
normally hold.
lower
2. Some sellers will ______________________
prices to reduce inventories; some will cut back
on producing output; others will do a little of both.
equilibrium
3. Price and output tend to fall until ______________________
is reached.
rises
C. Price ______________________
when a shortage exists.
1. With a shortage, buyers will not be able to buy all they had hoped to buy.
higher
2. Some buyers will offer to pay a(n) ______________________
price to get sellers to sell to
them instead of to other buyers.
more
3. The higher prices motivate suppliers to start producing ______________________
output.
equilibrium
4. Price and output tend to rise until ______________________
is reached.
II. What Causes Equilibrium Prices to Change?
A. Demand increases (and supply stays the same).
right
1. An increase in demand shifts the demand curve to the ______________________.
greater
2. Initially, quantity demanded is ______________________
than quantity supplied, so a
shortage exists.
rise
3. Price begins to ______________________
until the market is in equilibrium again.
4. Conclusion: An increase in the demand for a good will increase price, all other things
remaining the same.
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CHAPTER 6, SECTION 1
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CHAPTER 6, SECTION 1
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CHAPTER 6, SECTION 2
Supply and Demand in Everyday Life
Each of the graphs in questions 19 shows supply and demand for the good named in the title of
the graph. Then the event described occurs. On the graph, illustrate the shift in the supply curve
or the demand curve as a result of the event. Then, fill in the blanks to indicate how equilibrium
price and equilibrium quantity change as a result of the event.
2. Event: A high protein diet fad sweeps the nation.
Price
Price
D
0
Quantity
D
0
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Quantity
Supply and Demand for Hamburger
73
Price
Price
D
0
D
0
Quantity
Supply and Demand for Gadgets
Quantity
Supply and Demand for American-Made Cars
Price
Price
D
0
Quantity
Supply and Demand for VHS Tapes
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CHAPTER 6, SECTION 2
D
0
Quantity
Supply and Demand for Gasoline
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Price
Price
D
0
D
0
Quantity
Supply and Demand for Corn
Quantity
Supply and Demand for Gasoline
Price
D
0
Quantity
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CHAPTER 6, SECTION 2
75
$120
$110
$100
$90
Price (per seat)
$80
$70
$60
$50
$40
$30
$20
$10
0
D
5
10
15 20 25 30 35 40 45 50 55 60
Quantity (thousands of seats)
$80
10. The equilibrium price is ______.
25,000
11. The equilibrium quantity is ______________________
tickets.
12. Why is the supply curve vertical?
There are only 25,000 seats, so only 25,000 tickets are available. Supply cannot be increased.
surplus
13. If concert organizers decide to charge $100 per ticket, the result will be a ______________________
10,000
of ______________________
tickets.
shortage
14. If concert organizers decide to charge $60 per ticket, the result will be a ______________________
of
10,000
______________________
tickets.
$80
15. Ticket scalpers will exist only if tickets are priced below ______.
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CHAPTER 6, SECTION 2
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