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  • Assignment 4-Demand and Supply

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    Abhishek
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    This document provides 14 scenarios involving changes in the cereal market and instructs students to analyze each scenario by drawing supply and demand graphs, identifying whether the change is a shift in supply or demand, and determining the resulting effect on price and quantity. For each scenario, students are asked to show the initial supply and demand equilibrium, identify the specific change as a supply or demand shift, and state how price and quantity would change after the shift occurs. The scenarios include changes such as a strike among cereal producers, a recession, changes in prices of related goods, actions by cereal producers and the government, new substitutes and technology, and an increase in population and cereal popularity.

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    This document provides 14 scenarios involving changes in the cereal market and instructs students to analyze each scenario by drawing supply and demand graphs, identifying whether the change is a shift in supply or demand, and determining the resulting effect on price and quantity. For each scenario, students are asked to show the initial supply and demand equilibrium, identify the specific change as a supply or demand shift, and state how price and quantity would change after the shift occurs. The scenarios include changes such as a strike among cereal producers, a recession, changes in prices of related goods, actions by cereal producers and the government, new substitutes and technology, and an increase in population and cereal popularity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    52 views2 pages

    Assignment 4-Demand and Supply

    Uploaded by

    Abhishek
    This document provides 14 scenarios involving changes in the cereal market and instructs students to analyze each scenario by drawing supply and demand graphs, identifying whether the change is a shift in supply or demand, and determining the resulting effect on price and quantity. For each scenario, students are asked to show the initial supply and demand equilibrium, identify the specific change as a supply or demand shift, and state how price and quantity would change after the shift occurs. The scenarios include changes such as a strike among cereal producers, a recession, changes in prices of related goods, actions by cereal producers and the government, new substitutes and technology, and an increase in population and cereal popularity.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    Student Name:_____________________________

    Demand and Supply Practice


    Use economic analysis to determine what happens to the price and quantity of cereal in each scenario.
    # Change Graph Economic Analysis
    1 1. Draw and Label Equilibrium:
    2. The Change:
    The workers who produce Supply or Demand
    cereal go on strike. Increase or Decrease
    Shifter
    3. After: Price _____ Quantity_____
    2 1. Draw and Label Equilibrium:
    The economy goes into a 2. The Change:
    recession causing Supply or Demand
    incomes to decrease
    Increase or Decrease
    (Assume cereal is a
    normal good). Shifter
    3. After: Price _____ Quantity_____
    3 1. Draw and Label Equilibrium:
    The price of milk, a 2. The Change:
    complement to cereal, Supply or Demand
    decreases (Analyze Increase or Decrease
    cereal). Shifter
    3. After: Price _____ Quantity_____
    4. 1. Draw and Label Equilibrium:
    The price of wheat and 2. The Change:
    corn, key resources in the Supply or Demand
    production of cereal, Increase or Decrease
    decreases. Shifter
    3. After: Price _____ Quantity_____
    5. 1. Draw and Label Equilibrium:
    2. The Change:
    Cereal producers increase Supply or Demand
    the price of cereal. Increase or Decrease
    Shifter
    3. After: Price _____ Quantity_____
    6. 1. Draw and Label Equilibrium:
    A reputable private 2. The Change:
    research institute Supply or Demand
    announces that children
    Increase or Decrease
    who eat cereal improve
    their grades in school. Shifter
    3. After: Price _____ Quantity_____
    7.
    1. Draw and Label Equilibrium:
    2. The Change:
    The government places a Supply or Demand
    per-unit tax on cereal
    Increase or Decrease
    manufacturers.
    Shifter
    3. After: Price _____ Quantity_____
    8. 1. Draw and Label Equilibrium:
    2. The Change:
    An improvement in Supply or Demand
    equipment and
    Increase or Decrease
    technology for cereal
    firms. Shifter
    3. After: Price _____ Quantity_____
    9. 1. Draw and Label Equilibrium:
    The supply of eggs, a 2. The Change:
    close substitute of cereal, Supply or Demand
    increases. (Analyze Increase or Decrease
    cereal) Shifter
    3. After: Price _____ Quantity_____
    10 1. Draw and Label Equilibrium:
    2. The Change:
    An increase in population Supply or Demand
    leading to an increase in
    Increase or Decrease
    cereal customers
    Shifter
    3. After: Price _____ Quantity_____
    11 1. Draw and Label Equilibrium:
    In order to promote
    American production, the 2. The Change:
    government subsidizes Supply or Demand
    cereal producers. Increase or Decrease
    (Analyze only American Shifter
    firms) 3. After: Price _____ Quantity_____
    12 1. Draw and Label Equilibrium:
    2. The Change:
    New firms begin to start Supply or Demand
    making cereal (Analyze
    Increase or Decrease
    the entire industry).
    Shifter
    3. After: Price _____ Quantity_____
    13 1. Draw and Label Equilibrium:
    2. The Change:
    The government Supply or Demand
    establishes a binding
    Increase or Decrease
    price ceiling for cereal.
    Shifter
    3. After: Price _____ Quantity_____
    14 The popularity of the 1. Draw and Label Equilibrium:
    cereal increases at the 2. The Change:
    same time new Demand- Up or Down Shifter-
    technology lowers
    Supply- Up or Down Shifter-
    production costs.
    3. After: Price _____ Quantity_____
    (Double Shift)

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