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Supply and Demand Quiz Answers

Supply and Demand Quiz Answers - Supply'and Demand Exam 1...

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Unformatted text preview: Supply'and Demand: Exam 1 Preparation Assume each situation described below occurs in isolation and independently of the other situations. For each situation, write don-v11 five pieces of information: *does it directly affect supply or demand?r *does it directly cause a curve to shift or does it directly»r cause amuvement along an existing curve? {e.g.', write “change in supply” “change in demand” “change in quantity supplied” or “change in quantity demanded”) *if a shift= What non-price determinant causes this shift?r *vvhat is the direction of the change (increase or decrease}? *show the movement on a graph (e.g.. either a shift or a movement alonga curve) for each example 1. Eli-hat happens in the U. S. market for Plan station 111 games if... a. the price at the Plan station III console (not the games) decreases akaafiti— trn dainmiéirtreaaax \3 \A Fir- {gi— - Lamp 4fie~flfih~ b. incomes fall in the U S. due to a sev ere recession Chaney. In (lineal {$.2an '\ ‘5 i\é\b"q Dib" thnlflf‘h—x c. the rice of the Platr station 1H games fall 3? {1.11%- Lands in, his?» ' THO Q‘ng’” 19$ wipe-Jr. EWEH‘lUii—E‘CLB at} Moutnnah‘n _ ‘hwk’ttgdtm:eéfii {it it} a awn“: w d. W others producing the Play station III games in another mung}- negotiate higher wages flakficfififi. n re “rennin e) (fitter-tense) / e é— Cfl‘k“: ESL "EVEEJM. 52m e. the price rises for the hi ue rajr high definition Dis 11%. that the Play station Ill games are rint d on at the game facton p C, mhefiL: nfi $mfip\é (.dicmm\ 9 /2: G9 9r“? a: {'23ij 2. Eli-hat happens in the US. market for Prozac antidepressant medication if... a. The makers of Prozac Antidepressant medication extend the market fi‘om humans to cats based on scientific studies Suggesting that a dose of Prozac will reduce the likelihood that a cat in 111 spravL urine inside choose to mark: its tetritorv. (Jar/m ELWA Cnnrdaetx) ?\ i) '1 $— ’Pokjifiék kwfifi r”; ‘Prflz-xne Q h. Given a major shortage of flu vaccines, thepn'ce of flu vaccines skyrocket. ll-liat is the impact on the Prozac market? (Clue: We w ill assume that the Prozac manufacturing plant can easilv and qcicltlv he transformid to produce other d gs like fljig a-ccines5/ 3“,, {heart} L in Euni3i> fidmerencnt , l P5W ‘3‘ng fixékd % féfims’iu '° , A Name—r Mw-fi nteicmfi 55km}: c. magenta PEEK—CE; M iiiiiiiiiiiiiiiiiiiiiiiiiiiii i: _‘L;:M1ww? Him “'5 b h. fl’h 5:? L- E} abnewlpk. gmgfixé gm); asfi renewing-am .. i! ““55““‘3593 do“ %:¢Kfi¥$r\i lit 1!: M. {an ntfiifixéshb “Gena-$5“ ‘3 \Bt‘fiébzn so ...
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