Economics Assessment 2 A-Day: Determining Supply and Demand

After Target runs a "Buy One, Get One Half Off" promotion on video games, what is the effect on the demand graph for those games?

A downward movement along the demand curve

A new federal tax is imposed on every barrel of oil produced by American oil companies like ExxonMobil. How does this affect the supply of oil?

The supply curve shifts to the left

Due to a new safety feature, consumers are more confident in their ability to drive a Jeep. What is the graphical effect on the demand for Jeeps?

The demand curve shifts to the right

A new regulation requires all meat producers like Tyson to meet expensive new safety standards. What happens to the supply of Tyson chicken?

The supply curve shifts to the left

Consumer expectations about the future economy improve, and they anticipate a significant rise in their future income. How does this affect their current demand for luxury vacations?

The current demand curve shifts to the right

Due to a bad harvest, the cost of cocoa beans increases. What is the effect on the supply of chocolate bars from Hershey's?

The supply curve shifts to the left

Due to high competition, a local bakery must lower its prices to attract customers. What is the graphical representation of this change on its supply curve?

A downward movement along the supply curve

The price of a substitute good, like a Samsung smartphone, increases. How does this affect the demand for Apple iPhones?

The demand curve for Apple iPhones shifts to the right

What is the effect on the supply of cars from a company like Chevrolet if they expect a future price increase?

The current supply curve shifts to the left

A new study shows that a particular brand of organic food is healthier than traditional food. How does this affect the demand for organic food from a company like Whole Foods?

The demand curve shifts to the right

A new government trade agreement opens up a new, cheaper source for imported steel, which is a key input for construction companies. How does this affect the supply of new buildings?

The supply curve shifts to the right

What happens to the demand graph for a concert ticket if the concert venue decides to offer tickets at a half-price discount?

A downward movement along the demand curve

If the population of a major city increases, how does this affect the overall market demand for goods and services sold by local businesses like grocery stores?

The demand curve shifts to the right

A boutique clothing store raises the price of its jackets. What is the effect on the store's supply curve for jackets?

An upward movement along the supply curve

Due to new tariffs on imported goods, it becomes more expensive for companies like Nike to produce their shoes overseas. How does this affect the supply of Nike shoes in the U.S. market?

The supply curve shifts to the left