Subject: ECONOMICS FROM A BUSINESS PERSPECTIVE No plagiarism- Below 10% Dead Line Nov- 3rd Microeconomics Supply and Demand Exercise Consider the initial effect of each of the following events on

Microeconomics Supply and Demand Exercise

Consider the initial effect of each of the following events on the underlined market. First indicate what the shifter is (i.e. for demand: number of buyers, price of related goods, etc and for supply: input prices, technology, etc.). Use an arrow to show whether there is an increase or decrease in demand (D), supply (S), equilibrium price (P) and equilibrium quantity (Q). Use a “0” for no change. Use the space provided to graph the appropriate shifts or movements. Be sure to label the axis, curves and equilibrium points.

Market/Event Graph Shifter D S P Q

1. Ipad5: Research is published

That proves Ipad5s cause cancer.

2. Ipad5: A new invention makes

Ipad5s cheaper to produce.

3. Ipad5: Tsunami in Japan and floods in Thailand

Hurt production of Ipad5s.

4. Beef: The price of grass (cattle food) rises

Due to dry weather (drought).

5. Beef: An outbreak of the disease

Listeria is linked to pork.

6. Apples: The wages of apple pickers

Increase due to govt. legislation.

7. World Wheat: World population is growing by

Over 2 million people per week.

8. World Wheat: Weather destroys wheat crop in

Canada and the US.