ACTIVITY Free Enterprise SUPPLY AND DEMAND There are various nonprice factors that cause shifts in the supply and demand curves, not just movement along the same curves. The chart below indicates several situations that will have an effect on the supply and demand curves for cable television. Read each situation and answer the following questions for each one in the chart. The first situation has been completed as an example. 1. Which nonprice factor causes the shift in the curve? 2. Would the shift be in the supply or demand curve? 3. Would there be an increase or decrease in quantity at each price? 4. In which direction on a graph would the shift go? Nonprice Supply or Increase or Direction of Factor Demand Decrease Shift 1. A very convincing ad warns tastes and demand decrease left parents about the dangers of preferences curve children's watching too much television. 2. After a two-month strike, cable installers receive a $1 /hour raise. 3. A new cable company opens. 4. The cost of renting VCR movies goes down. 5. New technology makes installing cable less expensive. 6. A large factory nearby lays off 2,000 workers. 7. Cable TV begins a very popular children's program. 8. A cable TV transmitter is severely damaged by a storm and has to be replaced