Economics

 

Instructions: Complete and submit Chapter 3 Drop Box Assignment. Find information in your text for Shifts in Demand (pages 52-54), Shifts in Supply

(pages 58-59) & Summary on page 64.
NOTE: sometimes there are NO shifts in supply and demand and sometimes the change in the equilibrium price is UNKNOWN.

Chapter 3: Demand, Supply & Market Equilibrium 20 points
Drop Box Assignment

There are many factors that can directly affect supply and demand and indirectly affect price and quantity.
In the first column is a change in a given factor. Identify the impact of this change as it relates to
Demand & Supply (right or left shifts), and Equilibrium Price & Equilibrium Quantity (increase or decrease).
See page 64 in your text for examples total correct / 3 = total points earned

FACTOR Shift in Demand Shift in Supply Change in Equilibrium Price Change in Equilibrium Quantity

1 Price of Substitute Rises

2 Price of Complement Falls

3 Income rises (normal good)

4 Income falls (inferior good)

5 Price of significant input rises

6 Technology Advances

7 Quotas are imposed on imports

8 Number of buyers rises

9 Number of sellers decreases

10 Expectations of higher prices

11 Taxes on production increase

12 Preferences for good increases

13 Increase in minimum wage

14 Value of the land decreases

15 Subsidies are provided

 

 

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