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. 6. The production process of tennis rackets becomes If higher incomes lead to greater demand, you are more efficient. assuming tennis rackets are a good. Each graph should look something like this! Income (the determinant) P increases D' Q increases 7. Wimbledon is showing on television. Q 2. The price of graphite increases. 8. A new company starts making tennis rackets. 3. The price of tennis balls increases. 9. To encourage physical activity, the government gives tennis racket producers a subsidy. 4. The wages of tennis racket factory workers decreases (but their productivity doesn't change). 10. For some reason people think the price of tennis rackets will go up next year. 5. The price of golf clubs goes up (and we have limited leisure time)