1. Markets in Action OBJECTIVE Demonstrate changes in market equilibrium

2. 2 1,200 600 300 4 8 12 16 D1D1 Increase in Demand D2D2 Shortage 900 S E1E1 E2E2 Quantity of Caribbean Cruises (thousands per year) Price per Cruise (dollars) 0

3. 40 30 10 20 30 40 D2D2 S D1D1 Surplus 20 Decrease in Demand E1E1 E2E2 Quantity of Gas Guzzlers (thousands per month) Price per Gas Guzzler (thousands of dollars) 0

4. 2 4 6 8 D Surplus S1S1 Increase in Supply S2S2 E1E1 E2E2 6 3 0 9 12 Quantity of Babysitters (thousands per month) Price per Hour (dollars)

5. 800 200 4 6810 D Shortage 600 S1S1 S2S2 400 Decrease in Supply E2E2 E1E1 0 Quantity of Lumber (billions of board feet per year) Price per 1,000 board feet (dollars)