Economics Unit 3 Worksheet - Demand and Supply Name _____________________ For each question, start with a supply and demand graph of the market for tennis rackets. What happens to supply or demand in each scenario? Identify the determinant and show shift on graph. Compare the old and new equilibriums to see what happened to equilibrium price and quantity as a result. 1. The incomes of consumers goes up. If higher incomes lead to greater demand, you are assuming tennis rackets are a ____________ good. Each graph should look something like this! P S Income (the determinant) P increases D' Q increases D Q 2. The price of graphite increases. 3. The price of tennis balls increases. 4. The wages of tennis racket factory workers decreases (but their productivity doesn't change). 5. The price of golf clubs goes up (and we have limited leisure time). 6. The production process of tennis rackets becomes more efficient. 7. Wimbledon is showing on television. 8. A new company starts making tennis rackets. 9. To encourage physical activity, the government gives tennis racket producers a subsidy. 10. For some reason people think the price of tennis rackets will go up next year