Sample Problem #1 Event: Coca Cola raises their prices PEPSI TIPSE ↓

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Presentation transcript:

Sample Problem #1 Event: Coca Cola raises their prices PEPSI TIPSE ↓ Price Substitute ↑ Demand ↑ (shifts right) Price S1 P2 ------------------- E2 $1 -------------- E1 ------------------ ------------- D2 D1 Q2 10,000 Qty

Sample Problem #2 Event: Chicken suddenly becomes more popular than beef In-Out Burger TIPSE ↓ Tastes ↓ Demand ↓ (shifts left) Price S1 D2 $2 ------------------- E1 ------------- P2 Q2 -------------- E2 ------------------ D1 1,000 Qty

Market for Porsches Problem #3 Event: The price of steel increases 35% (steel is used in the production of cars) Porsche TIN ↓ Input Prices ↑ Supply ↓ (shifts left) S2 Price S1 P2 ----------- E2 -------------- 80K E1 ---------------- ------------- D1 Q2 10K Qty

Tuna Problem #4 Event: New inventions increase tuna harvest Ahi Tuna TIN ↓ technology ↑ Supply ↑ (shifts right) S1 Price S2 80K ----------- E1 ------------- P2 Q2 E2 -------------- ---------------- D1 10K Qty