11:26 PM Wed Oct 11 L 74% Demand+and+Supply+Assessment+MU Q . .. Home Insert Draw Layout Review View Table Page E 5. 1. Draw and curve and shift: The government 2. The Change: subsidizes the growers of Supply or Demand watermelons. Increase or Decrease Shifter 6. A reputable private 1. Draw and curve and shift: research institute 2. The Change: announces that children Supply or Demand who eat cereal improve Increase or Decrease their grades in school. Shifter 7 1. Draw and curve and shift: The government places a 2. The Change: per-unit tax on cereal Supply or Demand manufacturers. Increase or Decrease Shifter Name Mod Date SUPPLY & DEMAND ASSESSMENT MU 8. P / 1. Draw and curve and shift: An improvement in 2. The Change: equipment and Supply or Demand technology for cereal Increase or Decrease firms. Shifter 9 1. Draw and curve and shift: The supply of eggs, a 2. The Change: close substitute of cereal, Supply or Demand increases. (Analyze Increase or Decrease cereal) Shifter 10 1. Draw and curve and shift: An increase in population 2. The Change leading to an increase in Supply or Demand cereal customers Increase or Decrease Shifter 11 In order to promote 1. Draw and curve and shift: American production, the 2. The Change: government subsidizes Supply or Demand cereal producers. Increase or Decrease (Analyze only American Shifter firms) 12 P / 1. Draw and curve and shift: New firms begin to start The Change:11:27 PM Wed Oct 11 L 74% Demand+and+Supply+Assessment+MU Q . .. Home Insert Draw Layout Review View Table Page E 12 1. Draw and curve and shift: New firms begin to start 2. The Change making cereal (Analyze Supply or Demand the entire industry). Increase or Decrease Shifter 13 1. Draw and curve and shift: The government 2. The Change: establishes a binding Supply or Demand price ceiling for cereal. Increase or Decrease Shifter 14 The popularity of the 1. Draw and curve and shift: cereal increases at the 2. The Change: same time new Demand- Up or Down technology lowers Shifter- production costs. Supply- Up or Down (Double Shift) Shifter- Adapted from The Study Guide by Walstad and Bingham p. 35, exercise 7 and Sally Dickson. Name Mod Date SUPPLY & DEMAND ASSESSMENT MU Answers: Demand or Supply Increase or Decrease Shifter Price Quantity Supply Decrease Availability of resources Increase Decrease Decrease Decrease N Demand Decrease Income 3 Demand Increase Price of related good Increase Increase 4 Supply Increase Price of resources Decrease Increase Demand Decrease Consumer Expectations ncrease Decrease 6 Demand Increase Tastes and preferences Increase Increase 7 Demand Decrease Government tax Increase Decrease 8 Supply Increase Technology Decrease Increase 9 Demand Decrease Price of related good Decrease Decrease 10 Demand Increase Number of buyers Increase Increase 11 Supply Increase Government subsidy Decrease Increase 12 Supply Increase Number of producers Decrease Increase 13 Supply Increase Government subsidy Decrease Increase 14 Demand Increase Tastes and preferences Indeterminate Increase Supply Increase Technology