Tuesday, February 3, 2015

Supply and Demand Problems 2

Basic Supply and Demand Graphing:  Problems
Assume markets already exist.
Assume ceteris paribus.
Show only the first change to occur
Watch out for Substitutes and Complements
Product being graphed
Event/Change in the market
Which thing changed first?
Which graph
(A through E)
List the change in EP, EQ
1.      Toyota Tundra Trucks
Toyota shuts down the San Antonio Production Plant
2.     Toyota
Tundra Trucks
The cost of gasoline goes to $10 a gallon
3.     Roll Royce Luxury Cars
Average income in the US triples in one year
4.     Honda Civic Cars
Honda announces,
“Buy 1 Get 1 Free”
5.     Hamburgers
The price of all vegetables triple (lettuce, ….)
6.     Hot dogs
Prices of charcoal for grilling drops in half
7.     Coca Cola
The price of all Pepsi products triples
8.     Batteries
A major hurricane enters the western Gulf of Mexico
9.     Toys
It is now December 26th
10.       Plastic Products
The price of crude oil falls dramatically

No comments:

Post a Comment