Week 2 Checkpoint Xeco212

Axia College 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                                 |Demands shifts left.   Tourist will stay|Price and quantity both decrease       |
|                                       |                                         |away from these areas.                 |                                       |
|Cost of cotton decreases               |Fabric                                   |Supply shifts right.   Production costs |Price decreases quantity increases     |
|                                       |                                         |decrease.                               |                                       |
|Technology improves efficiency in     |Pasta                                   |Supply shifts right. Pasta supply       |Price decreases, quantity increases.   |
|pasta manufacturing                   |                                         |increases. This is a result of         |                                       |