Advanced Supply and Demand
Honors Economic
Name:________________________
Directions: Draw a supply and demand diagram that illustrates the following examples.
1. The result of a new robot used to shorten the
assembly time of cell phones.
7. The quantity demanded for cheese when milk
prices have increased.
2. A rise in equilibrium price due to new research
showing no connection between cancer and red
meat.
8. The Quantity supplied of Big Macs when there is
an increase in price.
3. The demand for meat during National Be-AVegetarian-Today Day
9. What happens to demand when there is a increase
in price due to a baby boom.
4. The effect on demand of houses of a 10% income
tax increase.
10. The quantity supplied of jelly, when peanut butter
demand falls.
5. The result of a drought on the supply of wheat.
11. The change in quantity demanded if there is a
10% rise in the cost of guar, an input into
chewing gum.
6. The demand for ski boots, when the price of skis
dramatically decreases.
12. How an artificially set high price can result in a
surplus.
GRAPH A - Oranges
Price per
Bushel
GRAPH B - Apples
Price per
Bushel
Quantity of Oranges
Quantity of Apples
A frost has killed much of the expected crop of oranges in Florida. Refer to the graphs above to answer
the following questions. Circle the correct words.
1. There will be an increase / decrease in the demand / supply of oranges.
2. On graph A, draw the new supply or demand curve and label it S1 or D1.
3. There will be an increase / decrease in the quantity of oranges demand / supplied.
4. There will be an increase / decrease in the demand / supply of apples, as a result of the frost’s effect on the
juice orange crop.
5. On gaph B, draw in the new demand or supply curve and label it.
6. There will be an increase / decrease in the quantity of apples demanded / supplied.
7. What will happen to:
a. price of apples?
b. price of oranges?
c. quantity of oranges bought and sold?
d. quantity of apples bought and sold?