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 Demand is constant Demand increases Demand decreases Supply is constant P= Q= P= Q= P= Q= Supply increases P= Q= P= Q= P= Q= Supply decreases P= Q= P= Q= P= Q=

If the demand and supply curves for cookies are:

D = 50 - 6P, S = 14 + 3P

where P is the price of each cookie

Plot 8 points only

What is the equilibrium price?

What is the equilibrium quantity?

Illustrate what the effect is if the price of each cookie cannot be more than 2 pesos

Illustrate what the effect is if the

price per cookie cannot be less

than 6 pesos

Plot the supply and demand

schedules for the hypothetical

product in the table as supply and demand curves

what is the equilibrium price and quantity

if preferences change and people want to buy twice as much as before at each price

plot the new curve and identify

what the equilibrium price and

quantity will be

 Quantity Quantity Price (pesos) Demanded (units) Supplied (units) 10 5 25 8 10 20 6 15 15 2 20 10 0 25 5

Match the movement with the change described *The demand for "Milo" chocolate Drink

Movement

Change

Movement along the demand curve

(upward/downward)

Movement of the whole demand curve to the right

Movement of the

whole demand curve to the left

Consumer income increases

Succesful advertising by "Milo" on TV

An increase in the price of tea

A decrease in the price of milk

News of research showing that drinking

A decrease in income taxes

An increase in the quantity demanded of "Milo"

"Milo" is on special at the supermarket

The economy is in a severe recession

An increase in the price of "Milo"

A story on the news about a woman who found a piece of glass in a "Milo" packet

A decrease in the price of Cadbury chocolate drink

"Milo" is found to be an ideal source of

energy for athletes

Match the movement with the change described *The Supply of fish

Change

Movement

An increase in the price of boat fuel

New and more accurate fish-finding technology

An increase in the price of fish

The government imposes a quota on catching

Movement along the Supply curve

(upward/downward)

Movement of the whole Supply curve to the right

Movement of the

whole Supply curve to the left

fish

As a result of government regulations, additional safety equipment is needed on all commercial fishing boats

An increase in workers wages

The governement provides an export subsidy to

fishing operators

The government creates new marine reserves where commercial fishing was allowed in the past

As a result of overfishing fish stocks are depleted

Good weather conditions boost fish numbers

There is a devastating typhoon that destroys many fishing vessels