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Supply and Demand Shifts in the Supply and Demand curves result in changes in price and quantity.
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Demand Increases 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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Demand Decreases 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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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Supply Decreases 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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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Supply Increases 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 S1 P* Price of ____ P1 Demand Q* Q1 Quantity of
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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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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In the market for Redwood Lumber
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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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Demand Curve Shifts Left Price Decrease Quantity Decreases
In the market for cigars. A new study shows that smoking cigars results in lots of wrinkles 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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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Supply Curve Shifts Left Price Increases Quantity Decrease
In the market for paper. The price of wood pulp increases. (Wood pulp is used to make paper.) 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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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Demand Curve Shifts Right
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 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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Demand Curve Shifts Left Price Decrease Quantity Decreases
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 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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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Demand Curve Shifts Right
In the market for gasoline. Large SUV’s like Suburbans and Expeditions become more popular 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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In the market for umbrellas. Heavy rain is forecast.
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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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In the market for gasoline. Two super-tankers collide.
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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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The price of hamburger increases
NO CHANGE!!! There is only movement along the demand curve
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Supply Curve Shifts Left Price Increases Quantity Decrease
In the market of oranges. There is an early frost which destroys much of the crop in Florida. 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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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In the market for apples
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 S1 P* Price of ____ P1 Demand Q* Q1 Quantity of
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In the market for wine. The average grape harvesters rises by 10%.
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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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Demand Curve Shifts Right
In the market for U.S. cars. The U.S. imposes a tariff on Japanese car imports. 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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Demand Curve Shifts Left Price Decrease Quantity Decreases
In the market for hospital beds. Scientists discover a pill that cures cancer. 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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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Demand Curve Shifts Right
In the market for cement. A 7.9 earthquake hits San Francisco. (Severe earthquake) 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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Demand Curve Shifts Right
In the market for video rentals. The price of getting cable T.V. 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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Demand Curve Shifts Left Price Decrease Quantity Decreases
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 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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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In the market for taxi service. Local subway workers go on strike.
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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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In the market for bicycles helmets. The price of bicycles goes down.
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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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In the market for melons. The cost of water goes up.
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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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In the market for jellybeans. The price of jellybeans goes up
NO CHANGE!!! There is only movement along the demand curve
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In the market for Oreo cookies. The price of milk increases.
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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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Demand Curve Shifts Left Price Decrease Quantity Decreases
In the market for Burger King Whoopers. McDonalds lowers the price of Big Mac’s. 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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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Demand Curve Shifts Left Price Decrease Quantity Decreases
In the market for hot dogs. 60 Minutes does an expose called “The truth about hot dogs”. 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 P* Price of ____ P1 Demand D1 Q1 Q* Quantity of
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In the market for hot dog rolls. The price of flour rise.
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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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Supply Curve Shifts Left Price Increases Quantity Decrease
In the market for butter. Mad Cow Disease wipes out a lot of dairy cows. 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 S1 Supply P1 P* Price of ____ Demand Q1 Q* Quantity of
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Demand Curve Shifts Right
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 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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Demand Curve Shifts Right
In the market for cowboy boots. Old Navy launches an advertising campaign called “Everyone in Cowboy Boots”. 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 P1 P* Price of ____ D1 Demand Q* Q1 Quantity of
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