Name ____________________________________________________ Class Period
Supply and Demand Interactive
Go to: https://americanheritage.byu.edu/Pages/GamesandActivities/Supply-and-Demand-Interactive-Chart.aspx
1. What is the product being sold? _________________________
2. Create a supply and demand schedule for each of the following price points:
Price
Quantity Demanded
Quantity Supplied
8
7
6
5
4.10
3
3. List the following:
a. Market clearing price (equilibrium price) _________
b. Quantity equilibrium _________
c. Description of equilibrium price (found at top of page)_________________________________________
d. What is the surplus at $ 8 __________
e. What is the surplus at $ 6 __________
f. Description of surplus ___________________________________________________________________
g. What is the shortage at $ 3 _________
h. What is the shortage at $ 4 _________
i. Description of shortage _________________________________________________________________
Go to: http://www.reffonomics.com/TRB/chapter4/sd12.swf
Shift the curve on the website above in order to fill in the blanks for each of the following:
Scenario
1.
2.
3.
4.
5.
6.
7.
Curve
Shifted
(Supply or
Demand)
Assume that the economy of the country of Alpha is experiencing
increasing unemployment. Steak is considered a normal good in Alpha.
Assume that the economy of the country of Alpha is experiencing
increasing unemployment. Hamburger is considered an inferior good in
Alpha.
The country of Alpha experiences an increase in immigration that leads to an
additional one million consumers. What will be the affect on this
immigration on Grog the popular drink of Alpha.
A plague has a devastating impact on the population of Alpha. Illustrate
using a supply and demand graph how this will impact the market for
chicken.
Coffee and cream are complementary goods. An unexpected period of bad
weather adversely affects the coffee bean crop. Use a supply and demand
graph to illustrate the affect of this bad weather on the price and quantity of
coffee.
Coffee and cream are complementary goods. An unexpected period of bad
weather adversely affects the coffee bean crop. Use a supply and demand
graph to illustrate the affect of this bad weather on the price and quantity of
cream.
A major news source reports an outbreak of salmonella affects the peanut
butter snacks industry. Use a supply and demand graph to illustrate the
immediate impact on price and quantity of this news
Direction
(Right or
Left)
Affect on
Price
(Increase
or
Decrease)
Quantity
(Increase
or
Decrease)
Go to: http://www.reffonomics.com/TRB/chapter4/qs-qd5.swf
Scenario 1: The government now sets an effective price above the equilibrium price to a price of p4.
1. Is the price of p4 that is set by the government
above the equilibrium price a price floor or price
ceiling?
2. At a price of p4 will there be a shortage or surplus?
Scenario 2: The government now sets an effective price below the equilibrium price to a price of p1.
1. Is the price of p4 that is set by the government
above the equilibrium price a price floor or price
ceiling?
2. At a price of p4 will there be a shortage or surplus?