xeco212_appendix_b - Associate Level Material Appendix B...

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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 Oil rigs have to shut down Supply shifts left. The supply of oil will be down and the price of oil will go up Price will go up on oil and on gas and people all over the country will feel it at the pump. Cost of cotton decreases Fabric Supply shifts right. Production costs are decrease. With the price decreases then the quantity increase. Technology improves efficiency in pasta manufacturing Pasta Supply shift to the right. Pasta supply increased. This is a direct result of technological improvements in making pasta. Price goes down more
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xeco212_appendix_b - Associate Level Material Appendix B...

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