1. Supply & Demand Graphing Analysis of changes in S & D HINT: Get out the supply & demand shift worksheets and the reasons for shifts. This will be helpful.

2. Steps to Solve Scenario Ask these questions (in this order) of yourself for each factor as you solve: 1: Is this a 3 rd variable in the equation? 2. If it is, does it primarily affect supply or demand? 3. Is it an increase or decrease?

3. Market: Plywood Factor # 1: Hurricane approaches and is threatening just off the coast Factor # 2: Terrorists use a computer virus which destroys plywood making software 1.Construct a market graph and draw the appropriate shifts in Supply & Demand 2.Explain what happens to price & quantity?

4. 2005 Toyota Prius Hybrid Factor # 1: Car & Driver Mag says it gets 55 MPG Factor # 2: Toyota signs a labor agreement cutting wages 5% 1.Construct a market graph and draw the appropriate shifts in Supply & Demand 2.Explain what happens to price & quantity?

5. Logan’s Roadhouse Food TODAY Factor # 1: 5 new restaurants open within a mile of Logan’s last month Factor # 2: Logan’s promotion of buy one get one lunch for free starts tomorrow. 1.Construct a market graph and draw the appropriate shifts in Supply & Demand 2.Explain what happens to price & quantity?

6. Skittles Factor # 1: Price of Starbursts decreases by 50% Factor # 2: Price of sugar increases by 10% 1.Construct a market graph and draw the appropriate shifts in Supply & Demand 2.Explain what happens to price & quantity?

7. Burger King’s new full pound burger Factor # 1: New large condos and apartments are both built next door Factor # 2: Government places an excise tax on excessively fatty foods 1.Construct a market graph and draw the appropriate shifts in Supply & Demand 2.Explain what happens to price & quantity?

8. Market: Ice Cream Factor # 1: Weekly forecast shows record high temps and clear skies Factor # 2: Report of greater ice cream demand is in the USA Today 1.Construct a market graph and draw the appropriate shifts in Supply & Demand 2.Explain what happens to price & quantity?