1. BOTTLED WATER Problem #1
Event: Coke & Pepsi exit bottled water industry
Bottled Water
TIN ↓
# Sellers ↓
Supply ↓
(shifts left) S2
Price S1
DECREASE IN SUPPLY
Change in QUANTITY DEMANDED
(decrease)
Know This! P2 E2
$150 E1 D1 Q2
20K
Qty

2. Problem # 2 Sports Cars Event: Economy falls into a recession TIPSE↓
Income ↓
Demand ↓
(shifts left)
Sports Cars
Price S1 D2
DECREASE IN Demand
Change in QUANTITY Supplied
(decrease)
Know This!
$75,000 E1 P2 Q2 E2 D1
2 mil.
Qty

3. Sample Problem #3 Squaw Valley
Event: Winter conditions best in years
TIPSE ↓
Expectations ↑
Demand ↑
(shifts right)
Lift Tickets
Price S1
INCREASE IN DEMAND
Change in QUANTITY SUPPLIED
(Increase)
Know This! P2 E2
$52 E1 D2 D1 Q2
15,000
Qty

4. Cell Phones Problem #4 Event: Semi Conductor prices fall TIN↓
Input Prices ↓
Supply ↑
(shifts right)
Cell Phones S1
Price S2
INCREASE IN SUPPLY
Change in QUANTITY DEMANDED
(increase)
Know This!
150 E1 P2 Q2 E2 D1
10M
Qty