real_ch_in_eq

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Real Changes in Equilibrium

For each of the following examples, on a separate sheet of paper, draw and label a basic supply and demand graph.

Then, based on the event provided, show

1) how equilibrium would change, 2) what would happen to price and quantity, and 3) the reason for the change.

For example if we start with a graph of computer printers, it would look like this: 

   If we then learn that the price of ink cartridges is going up, the new graph would look like this:

Now do the same thing for the following situations:

1. Original Graph: I-Pods

    Event: Unemployment Rate Rises

2. Original Graph: Starbucks Coffee on Castro Valley Blvd.

    Event: Eden Health Center Closes

3. Original Graph: Ford Trucks

    Event: New Tougher Emission Standards Become Law

4. Original Graph: McDonald’s Big Macs

    Event: Burger King Eliminates Value Menu

5. Original Graph: Hanes T-Shirts

    Event: Price of Cotton Rises

6. Original Graph: Laptops

    Event: Corporate Profit Tax Increases

7. Original Graph: Lucky Charms Cereal

    Event: Price of Milk Doubles

8. Original Graph: Bottled Water

    Event: Scientists Predict Major Earthquake in Next 3 Months

9. Original Graph: Basketball Shoes

    Event: Inexpensive Synthetic Leather Perfected

10. Original Graph: Townsend and Townsend Law Offices

      Event: Study Finds Workers Spending More Time on Facebook

11. Original Graph: Jansport Backpacks

      Event: Dick’s Sporting Goods Files for Bankruptcy