The objective of this Case Study is to provide students with the opportunity to perform a practical application of Macroeconomics. A key skill in economics is the ability to use the theory of supply and demand to analyze specific markets. In this assignment, you get a chance to demonstrate your ability to analyze the effects of several "shocks" tothe market for Ice Cream at a local shop called Piper's Truly Scrumptious. Answer all parts of each of the scenarios below.

Piper's Truly Scrumptious Ice Cream recently opened in Niagara on the Lake, ON - Canada's prettiest town. They sell the best Ice Cream in the Niagara region, however, the owner, Piper, noticed that the amount of Ice Cream they sell each month changes all the time. Using what you know about Supply and Demand, answer the following questions to explain why Piper's Truly Scrumptious Ice Cream sales have been fluctuating.

For this assignment, answer the questions below in a Microsoft Word Report Format using the template on the course page.

Report Expectation

Section 1: Truly Scrumptious Ice Cream recently decreased the price of their bestselling cone as a good-will gesture given the unstable state of the economy.

Will this shift the supply or the demand for ice cream, both or none? Explain why

Why is a supply curve upward sloping?

Why is a demand curve downward sloping?

Section 2: Truly Scrumptious Ice Cream's main competitor, Bonnie's Cookies and Shake's recently increased their price of milkshakes and cookies given inflationary pressures.

Will this affect the supply or the demand for Piper's Truly Scrumptious Ice Cream?

What will happen to the curve that is affected? Explain why.

Show graphically the impact this will have on the Supply and Demand curve and the new equilibrium price.

(Either create a curve using "Paint" or "Word" or "PowerPoint", or draw one on a piece of paper, take a picture and add it to the appendix of your paper)

Section 3: Piper gets all of her raw ingredients to make her Ice Cream from scratch. She has a supplier, Schrute Dairy Farms Inc. They supply her milk so she can make Ice Cream. Schrute Farms Inc. just participated in a study on the impact Ice Cream has on health. The study concluded that one Ice Cream Cone a day can improve mental health levels. The study will be released to the public in 3 months.

A. Which curve will be affected first? The supply or the demand for Piper's Truly Scrumptious Ice Cream? B. What will happen to the first curve that is affected? Explain why.

C. Show graphically the impact this will have on the Supply and Demand curve and the new equilibrium price. (Either create a curve using "Paint" or "Word" or "PowerPoint", or draw one on a piece of paper, take a picture and add it to the appendix of your paper)

Section 4: From October to April each year, Piper's Truly Scrumptious must let go of several employees.

A. Explain why they would need to let go of employees from October to April each year based on what you know about supply and demand.

o Hint: Think about the shifters of demand