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Unformatted text preview: Name______________________________ Supply and demand practice Draw 2 shifts in each graph indicating how demand (D), supply (S), price (P), and equilibrium quantity exchanged (Q) are affected after taking into account all the events given. Assume all events have an impact on the market being considered. PUT ONE SYMBOL ONLY IN EACH BOX. a. D & S: Use “+” for a rightward shift, “-“ for a leftward shift, “0” for no shift, and “?” if the combined impact is unknown (a “+” combined with a “–” results in a “?”). b. P & Q: Use “+” for an increase, “-“ for a decrease, “0” for no change, and “?” if the combined impact is unknown (a “+” combined with a “–” results in a “?”). c. Label the S&D curves and draw the adjustment(s) on the graphs. Market Event(s) D S P Q 1. New Price of Lumber Homes decreases; Construction Workers’ wages decrease 2. Software Computers (for the end-user/ consumer decrease in Price; Office rental space in Silicon Valley gets moe expensive The UAW (United Auto Worker’s Union) agrees to the same pay scale as non-union autoworkers (wage decreases); Several brands of affordable ($20K) all-electric cars come on the market, which mimic exactly the performance of traditional cars
Price Quantity 3. Gaspowered cars Price Quantity Price Quantity ...
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This note was uploaded on 04/10/2010 for the course ECON 1B a taught by Professor 2 during the Spring '10 term at Foothill College.
- Spring '10