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 |Oil supplies |Supply (left) – Oilrigs damaged or |Price will increase and quantity will | | | |destroyed in the Gulf Coast resulting |decrease. | | | |in reduced production. | | |Cost of cotton decreases |Clothing, Textile |Both (right)- cost of producing |Price will decrease and quantity will | | | |textiles and clothing can be reduced |increase | | | |allowing for more supply and lower | | |...