1. Why is the demand curve downward sloping?

2. What is one factor that would cause the demand curve to shift to the right?

3. What is one factor that would cause the supply curve to shift to the right?

Hint for the next 4 graph questions: If you draw the graphs correctly, you will have examples of the 4 possible graph shifts: demand shifting left, demand shifting right, supply shifting left, and supply shift right (not necessarily in that order).

4. Draw a supply and demand graph for the market for air travel. Analyze the impact of an increase in the cost of jet fuel. Be sure to use just one graph, shifting either the demand curve or the supply curve the correct direction. Show the impact on equilibrium price and equilibrium quantity.

5. Draw a supply and demand graph for new cars. Show the impact that the 2008-09 recession (with the decrease in consumer income) had on the market for cars. You can show this best by shifting one of the curves. What happens to the price and quantity of new cars?

6. Analyze the impact of a decrease in tariffs (taxes) on imported flat screen televisions in the market for flat screen televisions.

7. In 2014, the Seattle Seahawks won the Super Bowl. Draw a supply and demand graph for Seahawk tickets in the following season to show the impact of the Super Bowl win. (It would be the same graph for Seahawk t-shirts, hotdogs at the game and beer.)

8. What is a government price floor? What is one benefit? What is one cost?