Set 2 When supply and demand changes in an opposite direction. a.) Qd ↑ ; Qs b.) Qd ; as ↑ The Graph: The Graph:, Answers Questions 1. What happen to the Price Equilibrium? 2. What happen to Quantity Equilibrium? Questions 1. What happen to the Price Equilibrium? 2. What happen to Quantity Equilibrium? Answers

9. Shifts in supply or demand II The following graph shows the market for hot dogs in Detroit, where there are over 1,000 hot dog stands at any given moment. Suppose the price of sausage casing, a major ingredient in hot dogs, suddenly increases. Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Supply Demand QUANTITY (Hot dogs) PRICE (Dollars per hot dog)

24 of 100 Suppose that there is a freeze in California that damages the avocado crop. The effect on the market for avocados will be a in the equilibrium price. of the supply curve and a(n). DOOO leftward shift; decrease leftward shift; increase a rightward shift; increase rightward shift; decrease