Price Elasticity and Supply & Demand
Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity
|Event |Market affected by event |Shift in supply, demand, or both. |Change in equilibrium | | | |Explain your answer. | | |Frozen orange crops in California |Orange juice |Supply (left)—Not as many available |Price will increase and quantity will | | | |oranges to offer consumers. |decrease. | |Hurricanes in the Gulf Coast |Seafood |Supply(left) – Smaller quantity of |Price increase and quantity will | | | |seafood available for sell |decrease | |Cost of cotton decreases |Clothing |Supply(right) – cost less to make so |Quantity will increase price will | | | |more would be produced |increase/Demand will decrease. | | | |Demand(left) – supplier raises prices | | | | |causing consumers to buy less | |...