Apply economic theories furby mania supply and demand

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Apply Economic Theories, Furby ManiaSupply and Demand WorksheetGraph 2Sketch a graph of supply-and-demand curves that depict the holiday season when the Furby craze took off, but Furby toys still retailed for $35. Use the same colors as above. Mark the area that represents the shortage with a green line.2a. Explain what changed between Graph 1 and Graph 2. Is the change in demand represented by a shift in the curve or a movement along the curve? What does this do to the equilibrium point?2b. Explain what a shortage is. Does Graph 2 help explain why people bought $300 Furby toys? What does it show us?© Copyright 2015 College for America at Southern New Hampshire University. All rights reserved.
Apply Economic Theories, Furby ManiaSupply and Demand WorksheetGraph 3Sketch a graph of what the supply-and-demand curves would look like if the producers of Furby responded to the increased demand by producing more Furby toys and continuing to sell them for $35.3. How is Graph 3 different from Graph 2? What might the equilibrium point be now?4. It is 1998, and you own a toy store that sells Furby toys. You have a regular customer who buys your Furby toys and resells them online. She wants to buy your entire shipment of 100 © Copyright 2015 College for America at Southern New Hampshire University. All rights reserved.

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