01.

05 The Market Price

Step 1:

Supply (ROTTEN)
Demand (TRIBE)

Select one:
Select one:
A. "As more Americans hold on to
D. "Semiconductor chip shortage
older vehicles longer, oil and tire
woes: automobile manufacturers
change service shops see boom in
warn of delays in production and
profits."
higher prices."

B. "Influencers claim orange juice

E. "Safer, faster milk for less: dairy
cured their insomnia; claim leaves
leaders describe improved
doctors scratching their heads and
production process."
store cases looking bare."

F. "Social media campaigns increase

C. "U.S. birthrate continues to drop,
shelter adoptions; breeders report
signaling a colicky future for
giving up the puppy business."
makers of baby products."

Step 2:

Market for old vehicles

The slope represents the increase in profits over time
X axis = time
Y axis = profit

Milk production market

X axis = time
Y axis = state of improvement production process

Step 3:

Market for old vehicles new graph:

Market for milk production new graph:

Step 4:

Oil and Tire Change Service Shops Graph:

Originally, profits for oil and tire change service shops were on the rise as more people held
onto older vehicles. The graph now reflects a surge in demand, likely due to a new technology
making older cars popular. This shift, driven by technological advancements (TRIBE), resulted in
higher prices and more services provided.
Dairy Market Graph:
Initially, the dairy industry saw improvements in production processes, offering safer and more
affordable milk over time. The graph now shows a significant boost in efficiency, likely from a
technological innovation. This technological shift (TRIBE) led to a lower price and increased
quantity, benefiting consumers with safer, faster, and more affordable milk.