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Supply and Demand

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Submitted By twilightlover73
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Associate Level Material
Appendix B

Price Elasticity and Supply & Demand

Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity

|Event |Market affected by event |Shift in supply, demand, or both. |Change in equilibrium |
| | |Explain your answer. | |
|Frozen orange crops in California |Orange juice |Supply (left)—Not as many available |Price will increase and quantity will |
| | |oranges to offer consumers. |decrease. |
|Hurricanes in the Gulf Coast |Tourism |Demand (left) – not as many people will|Demand will decrease; price will |
| | |want to visit the Gulf Coast |decrease in order to try and maintain |
| | | |demand |
|Cost of cotton decreases |Textile industry |Supply (right) – more clothing will be |Price will decrease and quantity will |
| | |made since production costs will be |increase |
| |

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