For the next two, draw a little graph to show your work and fill in each of the blanks correctly with one of the following words: increase, decrease, demand or supply. 3. Product: Salsa Headline/Situation: Tortilla Chips go on sale so their price goes down a(n) in in eq. price & in eq. quantity. 4. Product: Automobiles Headline/Situation: Auto workers union goes on strike in a(n) in eq. quantity. in eq. price &

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter11: Marketing And Distribution
Section: Chapter Questions
Problem 20AA
icon
Related questions
Question
100%
**Supply and Demand Graphs Activity**

**Instructions:**
For the next two scenarios, draw a small graph to show your work and fill in each of the blanks correctly using one of the following words: increase, decrease, demand, or supply.

**Scenario 1:**

**Product: Salsa**

**Headline/Situation:** Tortilla Chips go on sale so their price goes down.

___(i)___ in **demand** ; ___(ii)___ in equilibrium price & ___(iii)___ in equilibrium quantity.

**Scenario 2:**

**Product: Automobiles**

**Headline/Situation:** Auto workers union goes on strike.

___(iv)___ in **supply** ; ___(v)___ in equilibrium price & ___(vi)___ in equilibrium quantity.

**Explanation:**
In Scenario 1 (Salsa), the sale on tortilla chips will likely increase the demand for salsa, leading to changes in its equilibrium price and equilibrium quantity. You need to determine whether these will increase or decrease based on economic principles.

In Scenario 2 (Automobiles), a strike by the auto workers union affects the supply of automobiles. You need to analyze how this will affect the equilibrium price and quantity in the market for automobiles.

**Graphical Analysis:**
Draw small supply-demand graphs for both scenarios to illustrate the changes:
- **Scenario 1:** Show the demand curve shifting.
- **Scenario 2:** Show the supply curve shifting.

**Educational Goal:**
This activity is designed to help students understand how external factors (like sales or strikes) can affect supply and demand in various markets, influencing prices and quantities.
Transcribed Image Text:**Supply and Demand Graphs Activity** **Instructions:** For the next two scenarios, draw a small graph to show your work and fill in each of the blanks correctly using one of the following words: increase, decrease, demand, or supply. **Scenario 1:** **Product: Salsa** **Headline/Situation:** Tortilla Chips go on sale so their price goes down. ___(i)___ in **demand** ; ___(ii)___ in equilibrium price & ___(iii)___ in equilibrium quantity. **Scenario 2:** **Product: Automobiles** **Headline/Situation:** Auto workers union goes on strike. ___(iv)___ in **supply** ; ___(v)___ in equilibrium price & ___(vi)___ in equilibrium quantity. **Explanation:** In Scenario 1 (Salsa), the sale on tortilla chips will likely increase the demand for salsa, leading to changes in its equilibrium price and equilibrium quantity. You need to determine whether these will increase or decrease based on economic principles. In Scenario 2 (Automobiles), a strike by the auto workers union affects the supply of automobiles. You need to analyze how this will affect the equilibrium price and quantity in the market for automobiles. **Graphical Analysis:** Draw small supply-demand graphs for both scenarios to illustrate the changes: - **Scenario 1:** Show the demand curve shifting. - **Scenario 2:** Show the supply curve shifting. **Educational Goal:** This activity is designed to help students understand how external factors (like sales or strikes) can affect supply and demand in various markets, influencing prices and quantities.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Cobweb Model
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co