Please note the following for 1-6, 1. Does the situation effect Supply or Demand
ID: 1215062 • Letter: P
Question
Please note the following for 1-6, 1. Does the situation effect Supply or Demand ? 2. What specific shift factor can you identify ? 3. Is the shift to the right or left ?
Supply or Demand
What is the Shift Factor ?
Shift to the left or right ?
1. Pizza Market - Price of Tomato Sauce increases
2. Bologna Market - Recession
3.Coffee Market - Price of Tea Increases
4.Pampers - Birth Rate Decreases
5.Oranges - Drought destroys orange crops.
6.Oil - Oil is discovered off the Coast of Massachusetts.
How the following shifts Demand. 1 You should note the specific shift factor and 2. if it is to the right or left.
Demand
Shift Factor
Shift to the Left or Right
7.Peanut Butter - Price of Jelly Decreases
8.Steak Market - Consumers income Increases
How the following shifts Supply. 1 You should note the specific shift factor and 2 if it is to the right or left.
Supply
Shift Factor
Shift to the Left or Right
9.Pizza Market - Walmart launches a new Pizza Resturant nationwide
10.Oil Market - New machine locates where Oil is located up to two miles deep.
Supply or Demand
What is the Shift Factor ?
Shift to the left or right ?
1. Pizza Market - Price of Tomato Sauce increases
2. Bologna Market - Recession
3.Coffee Market - Price of Tea Increases
4.Pampers - Birth Rate Decreases
5.Oranges - Drought destroys orange crops.
6.Oil - Oil is discovered off the Coast of Massachusetts.
Explanation / Answer
Price of Tomato Sauce increases-Demand for pizz decreases and shifts to the left as pizza and sauce as compliments, increase in price of one good reduces the demand for both the goods.
Bologna Market - Recession-Demand will decrease due to recession. Shift to the left.
.Coffee Market - Price of Tea Increases-Demand for coffee will increase as tea and coffee are substitutes.
Pampers - Birth Rate Decreases-Demand for pampers will decrease and demand curve will shift to the left.
Oranges - Drought destroys orange crops.-Supply will decrease and supply curve will shift to the left.
.Oil - Oil is discovered off the Coast of Massachusetts.- The supply of oil will increase and shift to the right.
7.Peanut Butter - Price of Jelly Decreases-demand for butter increases as both of them are substitutes of each other.