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Equilibrium Practice
Scenario Worksheet
Instruction: Please draw a graph that describes each scenario with all appropriate labels (title, axis title,
axis scale, demand and supply lines, arrows showing shift, original and new equilibrium point)
Scenario 1: Children have more
allowance to spend on the treats
Scenario 2: Willy Wonka has increased
the size of the factory for chocolate
production
Scenario 3: Children were sick from
eating too many treats
Scenario 4: Willy Wonka and
Woompa-Loompas are on a holiday
together
Scenario Worksheet - Answer
Scenario 1: Children have more
allowance to spend on the treats
Scenario 2: Willy Wonka has increased
the size of the factory for chocolate
production
Inc in Demand:
Inc in Supply
Scenario 3: Children were sick from
eating too many treats
Scenario 4: Willy Wonka and
Woompa-Loompas are on a holiday
together
Dec in Demand
Dec in Supply
Donut Equilibrium - Graph Practice
Use the following data to create demand and supply curves for donuts. Identify and determine the
equilibrium price. Use the graph paper on the following page. In your graph, be sure to include:
• A title
• Price on the vertical axis (y) axis
• Quantity on the horizontal (x) axis
• Label everything!
DONUTS
$
0.05
0.15
0.25
0.55
0.65
0.85
1.00
Qd
25
22
18
10
8
5
1
Qs
1
3
5
10
15
20
25
Equilibrium Price? $______
Equilibrium Quantity? ______
Changes in Market Equilibrium
On the graphs that follow, interpret the correct shift in supply or
demand for each situation. Be sure to give a reason for the shift! Indicate what happens to
equilibrium price and quantity by drawing the appropriate arrows in the blanks provided.
1. The price of ball bearings needed to make rollerblades rises sharply. How will this affect the
market for rollerblades?
PRICE___________
QUANTITY___________
REASON:
2. A
panel of doctors announces that skydiving is considered to be a
very dangerous activity. How will
this affect the market for skydiving?
PRICE___________
QUANTITY___________
REASON:
3. A
market for cauliflower?
frost kills a large part of the broccoli crop. How will this affect the
PRICE___________
QUANTITY___________
REASON:
1. The price of iPods declines substantially. How will this affect the market for songs downloads
from
2. itunes.com?
PRICE ___________
QUANTITY ___________
REASON:
3. The government decides nuclear power is too dangerous and closes all nuclear power plants that
4. are generating electricity. How will this affect the market for electricity?
PRICE ___________
QUANTITY___________
REASON:
6. If
fewer babies are born in the next five years, how will the baby
food market be affected?
PRICE ___________
QUANTITY ___________
REASON:
Donut Equilibrium - Graph Practice
Use the following data to create demand and supply curves for donuts. Identify and determine the
equilibrium price. Use the graph paper on the following page. In your graph, be sure to include:
• A title
• Price on the vertical axis (y) axis
• Quantity on the horizontal (x) axis
• Label everything!
$
0.05
0.15
0.25
0.55
0.65
0.85
1.00
Qd
25
22
18
10
8
5
1
Qs
1
3
5
10
15
20
25
Equilibrium Price? $__0.55 _
Equilibrium Quantity? __10__
Graph: check for all of the labels
- X-axis scale, title
- Y-axis scale, title
- Title of the graph
- Supply and demand curve
- Equilibrium point labelled
Changes in Market Equilibrium
On the graphs that follow, interpret the correct shift in supply or
demand for each situation. Be sure to give a reason for the shift! Indicate what happens to
equilibrium price and quantity by drawing the appropriate arrows in the blanks provided.
1. The price of ball bearings needed to make rollerblades rises sharply. How will this affect the
market for rollerblades?
PRICE INC
QUANTITY DEC
REASON:
Supply shift left/dec
2. A
panel of doctors announces that skydiving is considered to be a
very dangerous activity. How will
ithis affect the market for skydiving?
PRICE DEC
QUANTITY DEC
REASON:
3. A
market for cauliflower?
Dec shift left/dec
frost kills a large part of the broccoli crop. How will this affect the
PRICE INC
QUANTITY INC
REASON:
Demand shift right/inc
5. The price of iPods declines substantially. How will this affect the market for songs downloads
from
6. itunes.com?
PRICE INC
QUANTITY INC
REASON: Demand shift right/inc
5. The government decides nuclear power is too dangerous and closes all nuclear power plants that
are generating electricity. How will this affect the market for electricity?
PRICE INC
QUANTITY DEC
REASON:
6. If
Supply shift left/dec
fewer babies are born in the next five years, how will the baby
food market be affected?
PRICE DEC
QUANTITY DEC
REASON:
Demand shift left/dec