Changes in Supply and Demand
Changes in Supply and Demand
Try It
Question 1
Try graphing each of these situations to determine if they cause a shift in demand, quantity demanded, supply, or quantity supplied.
The cost of rubber used to produce tires falls by 20%. This will result in ________ for tires.
- an increase in the quantity demanded
- a decrease in demand
- an increase in demand
Question 2
A recent study reveals that raisins are a natural aphrodisiac. This will likely result in ________ for raisins.
- only a decrease in the quantity demanded
- only an increase in the quantity demanded
- an increase in demand
Question 3
An unexpected government tax rebate has given all the residents in your town $1,000 of extra income. This will result in ________ for goods at the local retail store.
- an increase in the quantity supplied
- anly an increase in quantity demanded
- an increase in supply
Question 4
A recent pork shortage has increased its price by 25% on the world market. As an avid fan of hot dogs you would expect ________.
- a decrease in demand
- anly a decrease in the quantity supplied
- a decrease in supply