Supply and Demand Shifts in the Supply and

Demand Increases • Demand Curve Shifts Right – In response to a higher price,

Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower

Supply Decreases • Supply Curve Shifts Left – In response to a higher price,

Supply Increases • Supply Curve Shifts Right Supply – In response to a lower

In the market for wheat. A drought destroys much of the wheat crop in

In the market for Redwood Lumber. Environmentalists urge consumers to boycott redwood products. •

In the market for cigars. A new study shows that smoking cigars results in

In the market for butter. The price of margarine goes up. Demand Increases Demand

In the market for paper. The price of wood pulp increases. (Wood pulp is

In the market for Hula Hoops. Brad Pitt confides to People Magazine that “he

In the market for Yachts. The average price of stocks falls by over 20%

In the market for gasoline. Large SUV’s like Suburbans and Expeditions become more popular

In the market for umbrellas. Heavy rain is forecast. • Demand Increases • Demand

In the market for gasoline. Two super-tankers collide. • Supply Decreases • Supply Curve

The price of hamburger increases • NO CHANGE!!! • There is only movement along

In the market of oranges. There is an early frost which destroys much of

In the market for apples. A new pesticide is developed which controls tent caterpillars.

In the market for wine. The average grape harvesters rises by 10%. • Supply

In the market for U. S. cars. The U. S. imposes a tariff on

In the market for hospital beds. Scientists discover a pill that cures cancer. •

In the market for cement. A 7. 9 earthquake hits San Francisco. (Severe earthquake)

In the market for video rentals. The price of getting cable T. V. goes

In the market for windshields. A new law is passed requiring gravel trucks to

In the market for taxi service. Local subway workers go on strike. • Demand

In the market for bicycles helmets. The price of bicycles goes down. • Demand

In the market for melons. The cost of water goes up. • Supply Decreases

In the market for jellybeans. The price of jellybeans goes up • NO CHANGE!!!

In the market for Oreo cookies. The price of milk increases. • Demand Decreases

In the market for Burger King Whoopers. Mc. Donalds lowers the price of Big

In the market for hot dogs. 60 Minutes does an expose called “The truth

In the market for hot dog rolls. The price of flour rise. • Supply

In the market for butter. Mad Cow Disease wipes out a lot of dairy

In the market for candles. An electric company official announces that a computer bug

In the market for cowboy boots. Old Navy launches an advertising campaign called “Everyone

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Supply and Demand Shifts in the Supply and Demand curves result in changes in price and quantity.

Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

Supply Increases • Supply Curve Shifts Right Supply – In response to a lower price, demanders will increase quantity demanded at the lower price ***Quantity Demanded and Quantity Supplied will Increase Price of ____ • Price Decreases • Quantity Increases S 1 P* P 1 Demand Q* Quantity of Q 1

In the market for wheat. A drought destroys much of the wheat crop in Kansas and Nebraska • • Supply Decreases Supply Curve Shifts Left Price Increases Quantity Decrease – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease S 1 Supply P 1 Price of ____ • • P* Demand Q 1 Q* Quantity of

In the market for Redwood Lumber. Environmentalists urge consumers to boycott redwood products. • • Demand Decreases Demand Curve Shifts Left Price Decrease Quantity Decreases – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Supply Price of ____ • • P* P 1 D 1 Q* Quantity of Demand

In the market for cigars. A new study shows that smoking cigars results in lots of wrinkles • Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

In the market for butter. The price of margarine goes up. Demand Increases Demand Curve Shifts Right • • Price Increases Quantity Increases: – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase Supply P 1 Price of ____ • • P* D 1 Demand Q* Quantity of Q 1

In the market for paper. The price of wood pulp increases. (Wood pulp is used to make paper. ) • Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

In the market for Hula Hoops. Brad Pitt confides to People Magazine that “he gets a big kick out of his Hula Hoop”. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for Yachts. The average price of stocks falls by over 20% between now and the end of the year. • Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

In the market for gasoline. Large SUV’s like Suburbans and Expeditions become more popular • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for umbrellas. Heavy rain is forecast. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for gasoline. Two super-tankers collide. • Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

The price of hamburger increases • NO CHANGE!!! • There is only movement along the demand curve

In the market of oranges. There is an early frost which destroys much of the crop in Florida. • Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

In the market for apples. A new pesticide is developed which controls tent caterpillars. (a threat to apples) • • Supply Increases Supply Curve Shifts Right Price Decreases Quantity Increases – In response to a lower price, demanders will increase quantity demanded at the lower price ***Quantity Demanded and Quantity Supplied will Increase Supply Price of ____ • • S 1 P* P 1 Demand Q* Quantity of Q 1

In the market for wine. The average grape harvesters rises by 10%. • Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

In the market for U. S. cars. The U. S. imposes a tariff on Japanese car imports. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for hospital beds. Scientists discover a pill that cures cancer. • Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

In the market for cement. A 7. 9 earthquake hits San Francisco. (Severe earthquake) • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for video rentals. The price of getting cable T. V. goes up. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for windshields. A new law is passed requiring gravel trucks to cover their loads with tarps. • Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

In the market for taxi service. Local subway workers go on strike. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for bicycles helmets. The price of bicycles goes down. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for melons. The cost of water goes up. • Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

In the market for jellybeans. The price of jellybeans goes up • NO CHANGE!!! • There is only movement along the demand curve

In the market for Oreo cookies. The price of milk increases. • Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

In the market for Burger King Whoopers. Mc. Donalds lowers the price of Big Mac’s. • Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

In the market for hot dogs. 60 Minutes does an expose called “The truth about hot dogs”. • Demand Decreases • Demand Curve Shifts Left Supply – In response to a lower price, suppliers will decrease quantity supplied at the lower price ***Quantity Demanded and Quantity Supplied will Decrease Price of ____ • Price Decrease • Quantity Decreases P* P 1 D 1 Q* Quantity of Demand

In the market for hot dog rolls. The price of flour rise. • Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

In the market for butter. Mad Cow Disease wipes out a lot of dairy cows. • Supply Decreases • Supply Curve Shifts Left – In response to a higher price, demanders will decrease quantity demanded at the higher price ***Quantity Demanded and Quantity Supplied will Decrease Supply P 1 Price of ____ • Price Increases • Quantity Decrease S 1 P* Demand Q 1 Q* Quantity of

In the market for candles. An electric company official announces that a computer bug will likely result in power outages. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1

In the market for cowboy boots. Old Navy launches an advertising campaign called “Everyone in Cowboy Boots”. • Demand Increases • Demand Curve Shifts Right – In response to a higher price, suppliers will increase quantity supplied at the higher price ***Quantity Demanded and quantity supplied will increase P 1 Price of ____ • Price Increases • Quantity Increases: Supply P* D 1 Demand Q* Quantity of Q 1