Show what happens to price and quantity when Price or Demand Determinants change.
Where relevant, state whether there is a change in quantity demanded or demand.
Increase in price
Increase in demand
Decrease in price
Decrease in demand
Given each good and determinant, show the shift in the demand curve and what happens to
price and quantity TODAY.
Good: Lancaster County housing
Good: Commercial Airline travel
RWE: New Yorkers move to Lancaster
RWE: Sept. 11th
County in hopes of finding a
better quality of life
Good: Cars
RWE: Major auto producers announce
new price increases effective
immediately
Good: Cereal
RWE: Significant increase in the price of
milk.
Good: RV’s (Recreational Vehicles)
RWE: Baby boomers reach retirement age
Good: Luxury cars
RWE: Medical students learn doctor
salaries are increasing faster than
expected
Good: Coffee Beans
RWE: Weather Channel reports that due to
poor weather conditions, coffee bean
output will be lower 6 months from now
than expected; therefore, coffee bean
price are expected to rise significantly
6 months from now
Good: Dining out
RWE: Sniper attacks
Show what happens to price and quantity when Price or Supply Determinants change.
Where relevant, state whether there is a change in quantity supplied or supply.
Increase in price
Increase in supply
Decrease in price
Decrease in supply
Given each good and determinant, show the shift in the demand curve and what happens to
price and quantity TODAY.
Good: Coffee Beans
Good: Commercial Airline Travel
RWE: Storm hits coffee plantations
RWE: War against Iraq puts upward
in Brazil
pressure on airline fuel prices
Good: Food in Zimbabwe
RWE: Mugabe allows the takeover
of private farms
Good: Automobiles
RWE: New, more efficient assembly
line robots developed
Good: Legal services in New York
RWE: 20 New York law firms destroyed
in 9/11 attack
Good: Skim milk
RWE: Significant decrease in
the price of whole milk
Good: Wine
RWE: Industry newsletter predicts
significantly lower wine prices
next year
Good: Toys
RWE: Toys-R-Us and other toy
retail workers form a union
Show what happens to price and quantity when Demand or Supply Determinants change.
Where relevant, state whether there is a change in quantity supplied, supply, quantity
demanded, or demand.
Increase in demand
Increase in supply
Decrease in demand
Decrease in supply
Increase in demand; increase in supply
Increase in demand; decrease in supply
Decrease in demand; increase in supply
Decrease in demand; decrease in supply
Given each good and determinant, show the shift in the demand and supply curves and
what happens to price and quantity TODAY. What happens to demand, quantity
demanded, supply, and quantity supplied.
Good: Coffee Beans
Good: Commercial Airline Travel
RWE: Storm hits coffee plantations
RWE: War against Iraq puts upward
in Brazil
pressure on airline fuel prices
Americans begin working
Sept. 11th
longer hours
Good: Food in Zimbabwe
RWE: Mugabe allows the takeover
of private farms
Zimbabweans expect higher
food prices in the future
Good: Automobiles
RWE: New, more efficient assembly
line robots developed
Motorcycles prices decline
Good: Legal services in New York
RWE: 20 New York law firms destroyed
in 9/11 attack
After 9/11 a large number of
people move out of the city
Good: Skim milk
RWE: Significant decrease in
the price of whole milk
New scientific report
emphasizes the importance
of a low fat diet
Good: Wine
RWE: Industry newsletter predicts
significantly lower wine prices
next year
Price of champagne increases
Good: Toys
RWE: Toys-R-Us and other toy
retail workers form a union
Christmas season comes to
an end