Demand and Supply

I. Demand and Supply (32 points). Read and analyze the situations below and answer the following questions. Using a graph, illustrate what will happen to the demand/supply curve given the following situations and provide an explanation for the shift or movement of the demand/supply curve. Rubrics for scoring is presented below. Criteria 2 points 1 point 0 point Explanation The explanation clearly The explanation discusses The explanation does not and comprehensively why such event/situation provide clear discussion discusses why such results to a change in about why such event/situation results to a demand/supply or event/situation results to change in demand/supply quantity change in demand/supply or quantity demanded/supplied but or quantity demanded/supplied. with minor inaccuracies demanded/supplied and is off-tangent Accuracy of the Graph The graph is properly and The graph is labeled and The graph does not contain correctly labeled and contains arrows to show any label nor arrow to arrows are correctly placed the shift/movement of the show the shift/movement to show the demand/supply or of the demand/supply or shift/movement of the quantity quantity demand/supply or demanded/supplied but demanded/supplied. quantity with minor inaccuracies. demanded/supplied. 1. Demand. Below is the demand curve for running shoes at a local retailer store. Draw the shift of the demand curve based on the situations that follow. Use arrows to signify the movement/shifting of the demand curve. Label each shift/movement of the demand curve. a. Many people decided to buy new running shoes to run in a local marathon. 1 of 5 AMDG b. Three months of uninterrupted rain keeps most people inside. c. There is an increase of 5% in the prices of each pair of running shoes. d. The price of sneakers has decreased due to a surplus of stocks