Following below are four graphs and four market scenarios, each of which would cause either a movement along the supply curve for premium bottled water or a shift of the supply curve. S₁ Q S₁ Q S2 B •D₁ Quantity Quantity 1 Quantity 2 3 Match each scenario with the appropriate diagram. a. A decrease in the supply of sports drinks: b. A drop in the average household income in the United States from $56,000 to $52,000: c. An improvement in the bottling technology for premium bottled water: d. An increase in the prices of electrolytes used in premium bottled water: ▼ S₁ D₁ D₁ D2 o Quantity 4 D2 D₁

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 7P
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Following below are four graphs and four market scenarios, each of which would cause either a movement along the supply curve for premium bottled water or a shift
of the supply curve.
S₁
S₂
S₁
S₁
B
A
B
GD
D₂
D₁
D₁
D₁
Quantity
Quantity
Quantity
1
Quantity
2
3
Match each scenario with the appropriate diagram.
a. A decrease in the supply of sports drinks:
b. A drop in the average household income in the United States from $56,000 to $52,000:
c. An improvement in the bottling technology for premium bottled water:
d. An increase in the prices of electrolytes used in premium bottled water:
Price
Price
B
52
Price
D₁
D₂
ON
Price
Transcribed Image Text:Following below are four graphs and four market scenarios, each of which would cause either a movement along the supply curve for premium bottled water or a shift of the supply curve. S₁ S₂ S₁ S₁ B A B GD D₂ D₁ D₁ D₁ Quantity Quantity Quantity 1 Quantity 2 3 Match each scenario with the appropriate diagram. a. A decrease in the supply of sports drinks: b. A drop in the average household income in the United States from $56,000 to $52,000: c. An improvement in the bottling technology for premium bottled water: d. An increase in the prices of electrolytes used in premium bottled water: Price Price B 52 Price D₁ D₂ ON Price
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