Activity 4 Assignment 1

The chart below contains several scenarios regard Supply and Demand.

Complete the chart by identifying if there is a change in demand, supply and price.

For an increase indicate it by ( + ), for a decrease indicate it by ( - ), for no change use ( 0 ).

If the effect is ambiguous and cannot be deduced from the information given, use ( U ).

Question

Demand

Supply

Price

E.g., Oranges.A freeze in Florida destroys part of the nation's orange crop.

0

-

+

1. Milk.Recently it has become possible to give cows a hormone that increases their milk supply.Suppose use of this hormone becomes widespread.

1. Hot dogs.Consumers can eat either hamburgers or hot dogs for dinner.The price of hamburger increases.

1. Hot dogs.The price of hot dog buns increases.

1. Wood.Logging companies find that their costs have increased due to expenses incurred meeting stricter environmental standards.

1. New Cars.A recession causes people's incomes to fall.

1. Toys.In retaliation for poor labour practices, the Prime Minister increases the tax on imported toys, resulting in fewer being imported.

1. Wine.Ontario produced wines win first place in an international wine competition.

1. Engineers.Restrictions on the employment of women by engineering firms are eliminated by federal law.

1. MP3's.Law is passed to permit downloading of MP3's from the Internet.

1. Hockey neck guards.It has become mandatory for every hockey player to wear a neck guard.