(6 points each for all 5 questions)
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 |Petroleum Industry |Supply (Left) – Refineries shutting |Price will increase and quantity will | | | |down will decrease the supply of |decrease | | | |gasoline and increase demand from the | | | | |consumers. | | |Cost of cotton decreases |Textiles |Supply (right) – There is a decrease in|Price will decrease and quantity will | | | |input cost. |increase....