xeco212_appendix_b (1)

xeco212_appendix_b (1) - Axia College Material Appendix B...

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Axia College Material Appendix B Price Elasticity and Supply & Demand Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity Event Market affected by event Shift in supply, demand, or both. Explain your answer. Change in equilibrium Frozen orange crops in California Orange juice Supply (left)—Not as many available oranges to offer consumers. Price will increase and quantity will decrease. Hurricanes in the Gulf Coast Seafood Supply---Seafood fishermen will not be able to stay out in the Gulf, thus reducing amount of seafood coming in. As quantity decreases, seafood prices will increase. Cost of cotton decreases Cotton, clothing Both---A decrease in cost means there was a plentiful increase in the harvest (supply) With costs decreasing, demand will shift favorably Since the cost of cotton decreased, the cost of making clothing should decrease therefore the
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This note was uploaded on 02/11/2011 for the course XECO 212 taught by Professor Cohen during the Fall '10 term at University of Phoenix.

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xeco212_appendix_b (1) - Axia College Material Appendix B...

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