Name: Date: Per: Demand Below is a table showing the market demand for greebes, a hypothetical product introduced to spare you the confusion of real world associations. Study the data in the table, and plot the demand for greebes on the axes provided below. Label the demand curve 'D," and answer the questions on the following pages. Demand for Greebes Demand Price Schedule $/Greebe $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 Old (millions) 350 300 250 200 150 100 50 40 .35 30 Price ($) .25 .20 .15 .10 .05 50 100 150 200 250 300 350 400 Quantity (millions)| The data for demand curve "D" indicate that at a price of #0.30 per greebe, buyers would be willing to buy million greebes. Other things constant, if the price of greebes increased to $0.40 per greebe, buyers would be willing to buy million greebes. Such a change would be called a(n) (increase / decrease) in (demand / quantity demanded). Other things constant, if the price of greebes decreased to $0.20, buyers would be willing to buy . million greebes. Such a change would be called a(n) (increase /decrease) in (demand / quantity demanded). The data for demand curve "D" indicate that for a quantity of 150 million greebes, buyers would be willing to offer a maximum "demand price" of $_ _ per greebe. Other things constant, if the quantity of greebes were increased to 250 million greebes, buyers would be willing to offer a maximum price of $_ _ per greebe.Now let's suppose that a dramatic increase in Federal income tax rates reduces the disposable income of greebe buyers. This change in the ceteris paribus conditions underlying the original demand for greebes will result in a decrease in demand, and we would have a new set of data such as that shown in the following table. Study the data in the new table, and plot the new demand curve for greebes on the diagram on the graph. Label the new demand curve "Di" and then answer the questions below. Decrease in the Demand for Greebes Price Quantity Demanded $ / Greebe Millions) $0.0 300 $0. 10 250 $0. 15 200 $0.20 150 $0.25 100 $0.30 50 Comparing the new demand curve ( Di) with the old demand curve (D), we can say that a decrease in the demand for greebes results in a shift of the demand curve to the (right / left). Such a shift indicates that at each of the possible prices shown, buyers are now willing to buy a (smaller / larger) quantity, and at each of the possible quantities shown, buyers are willing to offer a (higher / lower) maximum price. Now, let's suppose there is a dramatic increase in people's "taste" for greebes. This change in the ceteris paribus conditions underlying the original demand for greebes will result in an increase in demand, and we would have a new set of data such as that shown on the following table. Study the data in the new table, and plot this demand for greebes on the graph. Label the new demand curve "D2" and answer the questions below. Increase in the Demand for Greebes Price Quantity Demanded $ / Greebe (Millions) SO.20 350 $0.25 300 $0.30 250 $0.35 200 So. 40 150 SO.45 100 $0.50 50 Comparing the new demand curve (D2) with the original demand curve (D), we can say that an increase in the demand for greebes results in a shift of the demand curve to the (right / left). Such a shift indicates that at each of the possible prices shown, buyers are now willing to buy a (smaller / larger) quantity, and at each of the possible quantities shown, buyers are willing to offer a (higher / lower) maximum price.Supply Below is a table showing the market supply for greebes, a hypothetical product introduced to spare you the confusion of real world associations. Study the data in the table, and plot the supply for greebes on the axes provided below. Label the supply curve "S," and answer the questions on the following pages. Supply of Greebes Price Supply $/Greebe $0.10 Schedule $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 50 100 150 200 250 300 350 (millions) .40 .35 .30 Price ($) .25 .20 .15 .10 .05 0 50 100 150 200 250 300 350 400 Quantity (millions)| The data for supply curve "S" indicates that at a price of $0.25 per greebe suppliers would be willing to offer million greebes. Other things constant, if the price of greebes increased to $0.30 per greebe, suppliers would be willing to offer million greebes. Such a change would be a(n) (increase / decrease) in (supply / quantity supplied). Other things constant, if the price of greebes decreased to $0.20 per greebe, suppliers would be willing to offer million greebes. Such a change would be called a(n) (increase / decrease) in (supply / quantity supplied). The data for supply curve "S" indicates that for a quantity of 200 million greebes, the minimum price acceptable to suppliers is S per greebe. Other things constant, if the quantity of greebes increased to 250 million greebes, the minimum acceptable price would be $ _per greebe.Now let's suppose that there is a dramatic increase in the price of several of the raw materials used in making greebes. This change in the ceteris paribus conditions underlying the original supply of greebes will result in an increase in marginal cost and a decrease in supply, and we would have a new set of data such as that shown in the following table. Study the data in the new table, and plot this supply of greebes on the graph. Label the new supply curve "S," and answer the questions below. Decrease in the Supply of Greebes Price Quantity Supplied ($ / Greebe) (Millions) $0.20 50 SO.25 100 $0.30 150 $0.35 200 $0.40 250 Comparing the new supply curve (Si) with the old supply curve (S), we can say that a decrease in the supply of greebes results in a shift of the supply curve to the (right / left) Such a shift indicates that at each of the possible prices shown, suppliers are now willing to offer a (smaller / larger) quantity, and at each of the possible quantities shown, suppliers require a (higher / lower) minimum price. Now, to take another example, let's suppose that there is a dramatic decrease in the price of several of the raw materials used in making greebes. This change in the ceteris paribus conditions underlying the original supply of greebes will result in a decrease in marginal cost and an increase in supply, and we would have a new set of data such as that shown in the following table. Study the data in the new table, and plot this supply of greebes on the graph. Label the new supply curve "S," and answer the questions below. Increase in the Supply of Greebes Price Quantity Supplied (S / Greebe) [Millions) $0. 10 150 $0. 15 200 $0.20 250 $0.25 300 $0.30 350 Comparing the new supply curve (52) with the original supply curve (5), we can say that an increase in the supply of greebes results in a shift of the supply curve to the (right / left) Such a shift indicates that at each of the possible prices shown, suppliers are now willing to offer a (smaller / larger) quantity, and at each of the possible quantities shown, suppliers require a (higher / lower) minimum price.Equilibrium Below is a table showing the market Demand and Supply for greebes, a hypothetical product introduced to spare you the confusion of real world associations. Study the data in the table, and plot the All Points for greebes on the axes provided below. Label the demand curve "D" and "Di"supply curve "S," and "Si"and answer the questions on the following pages. Price Demand Demand Supply Supply (D) D1 (S) (S1 $0.05 300 $0.10 350 250 50 $0.15 300 200 100 -- $0.20 250 150 150 50 $0.25 200 100 200 100 $0.30 150 50 250 150 $0.35 100 300 200 $0.40 50 350 250 40 .35 .30 Price ($) 25 .20 .15 .10 .05 0 50 100 150 200 250 300 350 400 Quantity (millions)| Based on the data for the demand curve "D" and supply curve "S", what is the equilibrium price that satisfies the market? Comparing the new demand curve to [ Di) with the original supply curve (S) what effect did the demand shift have on the equilibrium price? Comparing the new supply curve (51) with the original demand curve (D) what effect did the supply shift have on the equilibrium price?Name: Date: Per: For each of the following problems, state which curve would shift: the supply curve or the demand curve. Then state whether the curve would shift to the right (an increase in supply or demand), or shift to the left (a decrease in supply or demand). Market Event Would the demand curve Would the curve shift or supply curve shift? to the right or left? wheat A drought destroys much of the crop. Supply Left redwood Environmentalists urge consumers to boycott redwood lumber products. cigars A new study shows that smoking cigars results in lots of wrinkles. butter The price of margarine goes up. paper The price of wood pulp rises. Hula hoops Brad Pitt confides to People magazine that "he gets a big kick out of his hula hoop." yachts The average price of stocks falls by over 20% between now and the end of the year. gasoline Large sports-utility vehicles (like Suburbans and Expeditions) become more popular. umbrellas Heavy rain is forecast. tofu E. Coli bacteria is found in another meat plant. gasoline Two oil supertankers collide. hamburger The price of hamburger rises. oranges There's an early frost which destroys much of the crop. apples A new pesticide is developed which controls tent caterpillars. grapes The National Marines Fisheries Service bans pesticide spraying within 1,000 feet of waterways containing coho salmon.Would the demand curve | Would the curve shift or supply curve shift? to the right or left? The average wage of grape harvesters rises by 10%. The U5, imposes a tariff on Japanese car imports. hospital beds Scientists discover & pill that cures cancer, A 7.5 earthquake hits San Francisco. Video rentals The price of getting cable TV goes up. windshields A new law is passed requinng gravel trucks to cover their loads with tarps. Taxi service Local subway workers go on strike Bike helmets The price of bicycles goes down The price of Safeway milk goes down, jellybeans The price of jellybeans goes up. The price of milk increases. Burger King McDorald's lowers the price of Big Macs. whoppers Hot dogs 60 Minutes does an expose called "The Truth about Hot Dogs.\" Hot dog buns The price of flour rises Mad Cow Disease wipes out a lot of dairy cows. candles An electric company official announces that & computer bug will likely result in power outages. melans The cost of water goes up