NAME: Equilibrium Worksheet Draw a well labeled model and complete the analysis First circle whether it a supply or demand question. Remember, Demand is about WANTING the product, Supply is about MAKING the product. Then circle whether this change will increase or decrease supply/demand. And tell which determinant (TIMER or TINGE). Then graph the change on an equilibrium graph. Once you have graphed the change, tell if price ↑ or ↓ and if quantity ↑ or ↓ No. Prompt Graph Analysis Lebron James accredits his 1. Supply or demand? GOAT status to eating Rice Increase or decrease? Krispies cereal every morning. Determinant? Show the effects on Rice 1 Krispies cereal. 2. Equilibrium after: PriceQuantity- 2 3 4 5 6 There has been a drought in Arkansas, affecting many of the rice farms there. Show the effects on Rice Krispies cereal. The government increases taxes on all cereal manufacturers. Show the effects on Rice Krispies cereal. Rice Krispies cereal is now found in many parts of Europe. Germans can’t get enough of them. Show the effects on Rice Krispies cereal. A new technology allows Kellogg’s to crisp rice faster. Show the effects on Rice Krispies cereal. General Mills also decides to produce a crispy rice cereal. Show the effects on rice cereal. 1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity- 7 8 9 Marshmallows are on sale, and people now want to make rice crispy treats. Show the effects on Rice Krispies cereal. Kroger is going to have a sale on all cereal next week. Show the effects on Rice Krispies cereal now. All American households receive a $5000 stimulus package from the government. Show the effects on Rice Krispies cereal. President Trump gives a subsidy to Kellogg’s. Show the effects on Rice Krispies cereal. 1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 10 11 12 13 14 The workers at the cereal factory demand a $2/hour raise. Show the effects on Rice Krispies cereal. Cinnamon Toast Crunch, another popular cereal, goes on sale. Show the effects on Rice Krispies cereal. The government decides that Rice Krispies are part of a healthy afternoon snack and put a price ceiling on it in order to make it available for everyone. Show the effects on Rice Krispies. Kellogg’s raises the prices of all of their cereals, including Rice Krispies. Show the effects on Rice Krispies. 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Increase or decrease? Determinant? 2. Equilibrium after: PriceQuantity1. Supply or demand? Price change? Increase or decrease? 2. Equilibrium after: PriceQuantity1. Supply or demand? Price change? Increase or decrease? 2. Equilibrium after: PriceQuantity-