___7. Increase in the price of Apple’s iPodApple’s iPod VideoVideo on the market for Microsoft’s ZuneMicrosoft’s Zune. ___8. Increase in the price of teatea on the market for lemonlemon.___9. Increase in business taxestaxes on the market for SUVsSUVs.___10. Consumers expectConsumers expect a shortage of cell phonescell phones.

““TRIBE”[”[D]] or or ““ROTTEN”

___1. Increase in incomeincome on the market for camcorderscamcorders. ___2. Increase in # of consumers# of consumers on market for computers.___3. Producer expectationsProducer expectations about a price increase.___4. Consumer expectationsConsumer expectations about a price increase.___5. Increase in # of producersproducers on market for digital cameras.___6. Increase in resource costresource cost on the market for bagels.

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1. An increase in incomeincome if Microsoft’s Zune is aMicrosoft’s Zune is a normal goodnormal good would: a. increase D, increase P, & increase Q. b. increase D, increase P, & decrease Q. c. increase S, increase P, & increase Q. d. decrease D, increase P, & increase Q.2. A decrease in the price of resourcesdecrease in the price of resources used to produce laptops will: a. increase S, increase P, & increase Q. b. increase D, increase P, & increase Q. c. decrease S, decrease P, & decrease Q. d. do none of the above3. Decrease in price of butterbutter on the market for the substitutesubstitute margarinemargarine: a. increase D, increase P, & decrease Q. b. decrease D, decrease P, & increase Q. c. decrease D, increase P, & decrease Q. d. do none of the above4. An improvement in technologyimprovement in technology used to produce DVDs will: a. decrease S, increase P, & decrease Q. b. decrease S, increase P, & increase Q. c. increase S, decrease P, & increase Q. d. decrease D, decrease P, & decrease Q.5. A decrease in the number of consumersdecrease in the number of consumers for Fuzzy Wuzzies: a. decrease S, decrease P, & decrease Q. b. increase D, increase P, & increase Q. c. decrease D, decrease P, & decrease Q. d. decrease D, decrease P, & increase Q.

Effect of Changes in “D” or “S” on Price and QuantityEffect of Changes in “D” or “S” on Price and Quantity

EE11EE22 EE11

EE22

EE11

EE22

EE22

EE11

6. A decrease in tastetaste for Fuzzy Wuzzies would: a. increase D, increase P, & increase Q. b. decrease D, increase P, & decrease Q. c. increase S, increase P, & increase Q. d. decrease D, decrease P, & decrease Q.7. A reduction in the number of firmsnumber of firms producing laptops: a. increase S, increase P, & increase Q. b. increase D, increase P, & increase Q. c. decrease S, increase P, & decrease Q. d. decrease S, decrease P, decrease Q.8. An increase in the price of pancakes, a complementcomplement for syrup would: a. increase D, increase P, & decrease Q. b. decrease D, decrease P, & increase Q. c. decrease D, decrease P, & decrease Q. d. do none of the above9. A decrease in incomeincome upon the market for spam would: a. decrease S, increase P, & decrease Q. b. decrease S, increase P, & increase Q. c. increase D, decrease P, & increase Q. d. increase D, increase P, & increase Q.10. Consumer expectationsConsumer expectations that the price of PSP will increase by 50% in the future will: a. decrease S, decrease P, & decrease Q. b. increase D, increase P, & increase Q. c. decrease D, decrease P, & decrease Q. d. decrease D, decrease P, & increase Q.

Effect of Changes in “D” or “S” on Price and QuantityEffect of Changes in “D” or “S” on Price and Quantity

[D[D –– ““TRIBE”; QD TRIBE”; QD –– price change of product (inverse)]price change of product (inverse)]

___1. Which of the following will cause an "Increase in Demand""Increase in Demand" for computers? a. decrease in price of computers b. decrease in income c. increase in income d. increase in the price of compu ters

___2. Which of the following will cause an "Increase in QD""Increase in QD" for computers? a. decrease in price of computers b. decrease in income c. increase in income d. increase in price of computers

___3. Which of the following will cause a "Decrease "Decrease in Demand"in Demand" for plasma TVs? a. increase in price of plasma TVs b. decrease in price of plasma TVs c. decrease in # of consumers(marketsize)

___4. Which of the following will cause a "Decrease in QD""Decrease in QD" for plasma TVs? a. increase in price of plasma TVs b. decrease in price of plasma TVs c. decrease in # of consumers (market size)

[S[S –– ““ROTTEN”;ROTTEN”; QSQS –– price change of product (direct)]price change of product (direct)] ___5. Which of the following will cause an "Increase in Supply""Increase in Supply" for DVDs?

a. decrease in price of DVDs c. decrease in resource cost b. increase in price of DVDs d. expectations of price increase

___6. Which of the following will cause an "Increase in QS""Increase in QS" for DVDs? a. decrease in price of DVDs c. decrease in resource price b. increase in price of DVDs d. expectations of price increase

___7. Which of the following will cause a "Decrease in Supply""Decrease in Supply" for DVDs? a. increase in price of DVDs c. subsidies to suppliers of DVDs b. decrease in price of DVDs d. expectations of price increase

___8. Which of the following will cause a "Decrease in QS""Decrease in QS" for digital cameras? a. increase in price of cameras c. subsidies to suppliers of cameras b. decrease in price of cameras d. expectations of digital camera price increase

CC

AACC

AA

CC

BB

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d. increase in price of computers

c. decrease in # of consumers

““IncreaseIncrease in in DD”” ““Decrease in Decrease in DD”” ““Increase in Increase in SS”” ““Decrease in Decrease in SS””

___1. Increase in price of computers computers on market for software.software.___2. Decrease in auto worker wagesauto worker wages on the market for autosautos.___3. Decrease in the price Pepsi Pepsi on the market for CokeCoke.___4. DDecrease in the price ofecrease in the price of computer chips computer chips on theon the computer computer marketmarket.___5. Increase in price of fertilizerfertilizer on the market for wheatwheat.___6. Decrease in government subsidiessubsidies on market for AIDS researchAIDS research.___7. Increase in incomesincomes on market for used clothingused clothing.___8. A new professional soccernew professional soccer league is formed upon the market for soccer gamessoccer games. ___9. Producer expectationsProducer expectations that the price of orange juice will increase 30% in 3 weeks? ___10. Consumer expectationsConsumer expectations that the price of orange juice will increase 30% in 3 weeks?___11. Decrease in price of computerscomputers upon market for monitorsmonitors?

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D1 D2

(A)(A) (B)(B) (C)(C) (D)(D)

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TRIBETRIBE ROTTENROTTEN

PP PP PP PP

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Quick Quiz#1

Last name A-M

S & D Quiz 1 for “Milk”S & D Quiz 1 for “Milk”1. Milk workers become unionized and win an increase in wagesincrease in wages.2. A decrease in price of the alternative output cheesedecrease in price of the alternative output cheese affect milk supply.3. A negative report on the dangers of cholesterol affect the tastetaste for milk.4. Milk demanddemand is affected by an increase of 10 million consumersincrease of 10 million consumers.5. CookiesCookies, a complement of milka complement of milk, increase in price and therefore affect the demand for milkdemand for milk. 6. A technological breakthroughtechnological breakthrough is discovered by a BL student who discovers that cows supply more milk if Ave Maria is playingAve Maria is playing during milking. 7. Milk producers expectMilk producers expect milkmilk prices to decrease 25%prices to decrease 25% in one week.8. Due to a deadly cow plague (caused by too much cow belly dancing), milkmilk availabilityavailability is expectedis expected to shrink by 50% & impact the current demand for milk. 9. SubsidiesSubsidies for milk production are increased by 20 cents per gallon.10. The price of orangeprice of orange juicejuice, a substitutesubstitute for milk, increased by 20%20%.

[[““++ or or ––””; ; ““DD”” or or ““SS””]]

5 Demand Shifters5 Demand Shifters 7 Supply Shifters7 Supply Shifters1. 1. TTasteaste - - directdirect 1. 1. RResource costesource cost [wages/raw materials – [wages/raw materials – IINNVVEERRSSEE2. 2. IIncome[ncome[normalnormal--directdirect; ; inferiorinferior--IINNVVEERRSSEE 2. 2. AAlternative outputlternative output price changes - price changes - IINNVVEERRSSEE3. 3. MMarket size (# of consumers–arket size (# of consumers–directdirect) 3.) 3. T Technology - echnology - directdirect4. 4. EExpectationsxpectations(Consumer)(Consumer) availability- availability-IINNVVEERRSSE E 4. 4. NNumber of suppliers - umber of suppliers - directdirect future future income-income-directdirect; future price-; future price-directdirect 5.5. EExpectationsxpectations[producer][producer] about future price- about future price-IINNVVEERRSSEE5.5. R Related good price changeselated good price changes 6. 6. SSubsidies - ubsidies - directdirect [[substitutessubstitutes--directdirect;; complementscomplements--IINNVVEERRSSEE 7. 7. TTaxes - axes - IINNVVEERRSSEE 1. –S 2. +S 3. –D 4. +D 5. –D 1. –S 2. +S 3. –D 4. +D 5. –D 6. +S 7. +S 8. +D 9. +S 10. +D6. +S 7. +S 8. +D 9. +S 10. +D

[How does each situation shift the “D” or “S” curve for milk?]

I love to listen to Ave Maria.

Quick Quiz#2

S & D Quiz 2 for “Milk”S & D Quiz 2 for “Milk”1. Milk producers hireproducers hire fewer fewer union workersunion workers, , decreasing resource costdecreasing resource cost.2. An inincrease in price crease in price of theof the alternative output cheese alternative output cheese affect milk supply.3. A positive report on the benefits of milk affect the tastetaste for milk.4. Milk demanddemand is affected by a dedecreasecrease of 20 million consumers of 20 million consumers.5. CookiesCookies, a a complement complement of milk of milk, decrease in price & therefore affect the demand for milkdemand for milk. 6. A technological breakthroughtechnological breakthrough is discovered by a BL student who discovers that cows supply more milk if Enya is singingEnya is singing during milking. 7. Milk producers expectMilk producers expect milkmilk prices to increase 25%prices to increase 25% in two weeks.8. Due to a deadly cow plague (caused by too much cow belly dancing), milkmilk availabilityavailability is expectedis expected to shrink by 60% & impact the current demand for milk. 9. SubsidiesSubsidies for milk production are decreased by 20 cents per gallon.10. The price of orange juiceprice of orange juice, a substitutesubstitute for milk, decreased by 20%20%.

[“[“++ or or ––”; “D” ”; “D” or or “S”]“S”]

5 Demand Shifters (TIMER)5 Demand Shifters (TIMER) 7 Supply Shifters – (RATNEST)7 Supply Shifters – (RATNEST)1. Taste1. Taste - - directdirect 1. Resource cost1. Resource cost [wages/raw materials – [wages/raw materials – IINNVVEERRSSEE2. Income[2. Income[normalnormal--directdirect; ; inferiorinferior--IINNVVEERRSSEE 2. Alternative output2. Alternative output price changes -price changes -IINNVVEERRSSEE3. Market size (# of consumers–3. Market size (# of consumers–directdirect 3. Technology - 3. Technology - directdirect4. E4. Expectationsxpectations(Consumer)(Consumer) availability- availability-IINNVVEERRSSE E 4. Number of suppliers - 4. Number of suppliers - directdirect future future income-income-directdirect; future price-; future price-directdirect; ; 5.5. EExpectationsxpectations[producer][producer] about future price- about future price-IINNVVEERRSSEE5. Related good price changes5. Related good price changes 6. Subsidies - 6. Subsidies - directdirect [[substitutessubstitutes--directdirect;; complementscomplements--IINNVVEERRSSEE 7. Taxes - 7. Taxes - IINNVVEERRSSEE

1. +S 2. -S 3. +D 4. -D 5. +D 1. +S 2. -S 3. +D 4. -D 5. +D 6. +S 7. -S 8. +D 9. -S 10. -D6. +S 7. -S 8. +D 9. -S 10. -D

[How does each situation shift the “D” or “S” curve for milk?]

I love Enya.

Review forReview forDemand and Demand and

SupplySupply

““You da man”You da man”

QDQD22QDQD11

PricePrice QDQD

IInnvveerrssee relationshirelationshipp

$250.00$250.00

D Reasons For Reasons For Downsloping “D”Downsloping “D” Curve Curve1. Income EffectIncome Effect –current buyers buy more.2. Substitution EffectSubstitution Effect– new buyers now purchase.3. Diminishing MarginalDiminishing Marginal Utility Utility - because buyers of successive units receive less marginal utility, they will buy more only when the price is lowered.

Change in QDChange in QD1. Price changePrice change2. MovementMovement [up/down the demand curve]3. Point to pointPoint to point [along the curve]

““D”D” refers to the “whole curve”.“whole curve”. [““all pricesall prices””]““QD”QD” refers to a “point on the curve”“point on the curve”

based on a “particular price.”“particular price.”

iPod iPod NanoNano

- As price increasesincreases …Q S also increasesincreases

DirectDirect relationship between PP & QSQS

PP22

PP11

QSQS11 QSS22

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“Let’s make more.”

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-As price decreasesAs price decreases… … QS QS also also decreasesdecreases

HelmetsHelmets

PP““TRIBE”TRIBE” TTastes [directdirect] RRelated Good Price Changes [substitutes-directdirect; complements-iinnvveerrssee]IIncomes -Normal [directdirect] & Inferior[iinnvveerrssee] B - # of Buyers - MB - # of Buyers - Market Size(# of

consumers) [directdirect] EExpectations of consumers about [future price-directdirect; future income [directdirect]; and availability [iinnvveerrssee]

““Demand Shifters” [TRIBE]Demand Shifters” [TRIBE]1. 1. TTaste [aste [directdirect]]2. 2. RRelated Good elated Good *Prices*Prices [substitutes- [substitutes-directdirect] [complements-] [complements-iinnvveerrssee]]3. 3. IIncome [normal-ncome [normal-directdirect] [inferior-] [inferior-iinnvveerrssee]]4. 4. Buyers # - MBuyers # - Market Size [number of consumers-arket Size [number of consumers-directdirect, , 5.5. E Expectations [of consumers about future xpectations [of consumers about future *price*price--directdirect about future availability-about future availability-iinnvveerrssee, or about future income–, or about future income–directdirect. ]. ]

Changes in “D” [curve]Changes in “D” [curve]1. Non price change [“TIMER”]2. Whole “D” curve shifts[There is a change in “QD” but it isnot caused by a change in “price.”[QD-”single price”QD-”single price”; D-”all prices”D-”all prices”]

ComplementComplement[[iinnvveerrssee]]

SubstituteSubstitute[[DirectDirect]]

ButterButter BreadBread BagelsBagelsPP

DD33 DD11 DD33

QDQD33 QDQD11 QDQD22

DD11 DD22

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$5

4

3

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Price

Quantity of Corn

CORN Plot the PointsPlot the Points

10 20 30 40 50 60 70 80

GRAPHING DEMANDGRAPHING DEMAND[“Change [“Change in in QD”]QD”]

$100$90$80$70$60$50$50$40$30$20$10

0

20 4040 6060 7575 100 120120 140 160160 180180 200200 220Quantity (units of any good or service)

7070 175175

120 =120120 =120QD=QSQD=QSEE

QDQD QSQSQDQD QSQS

QSQS QDQD

QSQS QDQD

DD SSPrice FloorPrice FloorSurplusSurplus

Price CeilingPrice CeilingShortageShortage

DollarDollarPricePrice

IfIf QS>QDQS>QD; ; Price DecreasesPrice DecreasesIfIf QS<QDQS<QD; ; PPricerice Increases IncreasesIfIf QD=QSQD=QS; ; PricePrice SStays tays SSameame

Change in “Supply” [Curve]Change in “Supply” [Curve]1. “Non-price change” [ROTTENROTTEN2. Whole supply curve “shifts”[There was a QS change but it was not caused by a change in price].

BroccoliBroccoli

“Suppliers produce smaller/ larger quantities at each price.”

““Substitutes in production”Substitutes in production”

I only I only have have 200 200

acresacres

SS11

SCornCorn SS11

PSS22

QS1 QS2

Alternative Output Price ChangeAlternative Output Price Change[[IINNVVEERRSSEE]]

QSQS1 1

P2

P1

PSS11 SS22

[new football league- bigger “S” of games]

Don’t confuse theseDon’t confuse thesetwo with Chg in QS.two with Chg in QS.

QSQS22QSQS33

SS33 SS22

PP

Four Possibilities

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Increase inIncrease insupplysupply of of gasgas

Slide RuleSlide RuleAfter introductionAfter introduction

of calculatorof calculator

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[TRIBE][TRIBE]

[ROTTEN][ROTTEN]

““D” for flagD” for flagafter 9/11after 9/11

““Increase in Demand”Increase in Demand”“Decrease in Demand”

““Increase in Supply”Increase in Supply” ““Decrease in Suppy”Decrease in Suppy”

DDecreaseecrease in in““S” of gasS” of gas

DD PP QQ DD PP QQ

SS QQ PPPP SS QQDD

SS11DD

SS11SS22

$1.85$1.85

$1.00$1.00

QQ1 1 QQ22 QQ2 2 Q Q11

$1.85$1.85SS11

$1.00$1.00

PP22PP11 PP11

PP22

QQ1 1 QQ22 QQ2 2 QQ11

AfterAfter “Looking “LookingFor Nemo”For Nemo”

““Change in QD”Change in QD” ““Change in QS”Change in QS”

““Change in Demand”Change in Demand”

““Chg in Supply”Chg in Supply”

Non-Price ChangeNon-Price ChangeWhole Curve ShiftsWhole Curve Shifts

[What is not heldconstant in these 4?]

Price ChangePrice Change

PointPoint to to PointPoint

MovementMovement[[IINNVVEERRSSEE]] [DIRECT][DIRECT]

PP11PP22

PP22PP11

QDQD1 1 QDQD22

DD SS

QDQD2 2 QDQD11

QSQS1 1 QSQS22

QSQS2 2 QSQS11

PP11

PP22

PP22

PP11

SS

D1DD22DD11

DD22

SS11S2

SS22 SS11

QQ1 1 QQ22 QQ22 QQ11

QQ1 1 QQ22 QQ2 2 QQ11

Price Changes forPrice Changes for SubstitutesSubstitutes && CCoommpplleemmeennttssSubs - DirectSubs - Direct

Dr Pepper

Complements -Complements - IInnvveerrssee

CokeCokePP11

PP22

PP11

PP22

QDQD11 QDQD22

DD

DD DD11

D2D2

DD11 DD22

Alternative Outputs -Alternative Outputs - IInnvveerrsseeSS S1

SS22PP11PP22 PP

QSQS22 QSQS11BroccoliBroccoli CornCorn

HelmetsHelmets

MotorcyclesMotorcyclesPP

PP

““IncreaseIncrease in in DD”” ““Decrease in Decrease in DD”” ““Increase in Increase in SS”” ““Decrease in Decrease in SS””

___1. Decrease in the price of printers printers on the market for cartridgescartridges..___2. Increase in worker wages worker wages on the market for computerscomputers.___3. Increase in the price Dr. Pepper Dr. Pepper on the market for CokeCoke.___4. InIncrease in the price ofcrease in the price of computer chips computer chips on theon the computer computer marketmarket.___5. Decrease in price of fertilizerfertilizer on the market for wheatwheat.___6. Increase in government subsidiessubsidies on the market for AIDS researchAIDS research.___7. Decrease in incomesincomes on the market for used clothingused clothing.___8. NNew professional hockeyew professional hockey league is formed upon the market for hockey gameshockey games. ___9. Producer expectations Producer expectations that the price of orange juice will decrease 30% in 3 weeks? ___10. Consumer expectations Consumer expectations that the price of orange juice will decrease 30% in 3 weeks?___11. Decrease in price of computerscomputers upon market for monitorsmonitors?

AADD

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CC

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D1 D2

(A)(A) (B)(B) (C)(C) (D)(D)

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TRIBETRIBE ROTTENROTTEN

PP PP PP PP

AA

1. A decrease in incomeincome if spamspam is an inferior good would: a. increase D, increase P, & increase Q. b. increase D, increase P, & decrease Q. c. increase S, increase P, & increase Q. d. decrease D, increase P, & increase Q.2. An increase in the price of resourcesincrease in the price of resources used to produce DVD Players will: a. increase S, increase P, & increase Q. b. increase D, increase P, & increase Q. c. decrease S, decrease P, & decrease Q. d. decrease S, increase P, & decrease Q.3. Decrease in price of butterbutter on the market for the substitute margarinemargarine: a. increase D, increase P, & decrease Q. b. decrease D, decrease P, & increase Q. c. decrease D, increase P, & decrease Q. d. do none of the above4. An improvement in technologyimprovement in technology used to produce DVDs will: a. decrease S, increase P, & decrease Q. b. decrease S, increase P, & increase Q. c. increase S, decrease P, & increase Q. d. decrease D, decrease P, & decrease Q.5. An increase in the number of consumersincrease in the number of consumers for Fuzzy Wuzzies: a. decrease S, decrease P, & decrease Q. b. increase D, increase P, & increase Q. c. decrease D, decrease P, & decrease Q. d. decrease D, decrease P, & increase Q.

Effect of Changes in “D” or “S” on Price and QuantityEffect of Changes in “D” or “S” on Price and Quantity

6. An increase in tastetaste for Fuzzy Wuzzies would: a. increase D, increase P, & increase Q. b. decrease D, increase P, & decrease Q. c. increase S, increase P, & increase Q. d. decrease D, decrease P, & decrease Q.7. A reduction in the number of firmsnumber of firms producing laptops: a. increase S, increase P, & increase Q. b. increase D, increase P, & increase Q. c. decrease S, increase P, & decrease Q. d. decrease S, decrease P, decrease Q.8. A decrease in the price of pancakespancakes, a complementcomplement for syrupsyrup would: a. increase D, increase P, & decrease Q. b. decrease D, decrease P, & increase Q. c. Increase D, increase P, & increase Q. d. do none of the above9. An increase in incomeincome upon the market for used carsused cars would: a. decrease S, increase P, & decrease Q. b. decrease S, increase P, & increase Q. c. increase D, decrease P, & increase Q. d. decrease D, decrease P, & decrease Q.10. Consumer expectationsConsumer expectations that the price of Nintendo DS will increase by 50% in the future will: a. decrease S, decrease P, & decrease Q. b. increase D, increase P, & increase Q. c. decrease D, decrease P, & decrease Q. d. decrease D, decrease P, & increase Q.

Effect of Changes in “D” or “S” on Price and QuantityEffect of Changes in “D” or “S” on Price and Quantity

[D [D –– ““TRIBE”; QDTRIBE”; QD –– price change of product(inverse)]price change of product(inverse)]

___1. Which of the following will cause a ““Decrease in Demand"Decrease in Demand" for Seven jeans? a. decrease in price of Seven jeans b. decrease in income c. increase in income d. increase in the price of compu ters

___2. Which of the following will cause a ““Decrease in QD"Decrease in QD" for Seven jeans? a. decrease in price of Seven jeans b. decrease in income c. increase in income d. increase in price of Sevens

___3. Which of the following will cause an “ “Increase Increase in Demand"in Demand" for Seven jeans? a. increase in price of Seven jeans b. decrease in price of Seven jeans c. decrease in # of consumers(marketsize)

___4. Which of the following will cause an “ “Increase in QD“ Increase in QD“ for Seven jeans? a. increase in price of Seven jeans b. decrease in price of Seven jeans c. decrease in # of consumers(marketsize)

[S [S –– ““ROTTEN”; QSROTTEN”; QS –– price change of product (direct)]price change of product (direct)] ___5. Which of the following will cause an ““Decrease in Supply"Decrease in Supply" for the Zune?

a. decrease in price of the Zune c. decrease in resource cost b. increase in price of the Zune d. expectations of price increase

___6. Which of the following will cause an ““Decrease in QS"Decrease in QS" for the Zune? a. decrease in price of the Zune c. decrease in resource price b. increase in price of the Zune d. expectations of price increase

___7. Which of the following will cause a ““Increase in Supply"Increase in Supply" for the Zune? a. increase in price of the Zune c. subsidies to suppliers of the Zune b. decrease in price of the Zune d. expectations of price increase

___8. Which of the following will cause a “ “Increase in QS"Increase in QS" for the Zune?

a. increase in price of the Zune c. subsidies to suppliers of the Zune b. decrease in price of the Zune d. expectations of a Zune price increase

BB

DD

CC

BB

DD

AA

CC

AA

d. increase in price of Sevens

c. increase in # of consumers

7 Revised

of the Zunefor the Zune

for the Zune

for the Zune

Practice “Supply Quiz”Practice “Supply Quiz” 1. Which would cause a “decrease in supply”“decrease in supply” for MP3 Players? a. decrease in the price of MP3s b. increase in the price of MP3s c. decrease in MP3 resource cost d. producer expectations of a price increase2. Which would cause a “decrease in QS”“decrease in QS” for MP3s? a. decrease in the price of MP3s b. increase in the price of MP3s c. decrease in MP3 resource cost d. producer expectations of a price increase3. Which would cause an “increase in supply”“increase in supply” for MP3 Players? a. decrease in the price of MP3 Players b. increase in the price of MP3s c. decrease in MP3 resource cost d. producer expectations of a price increase4. Which would cause an “increase in QS”“increase in QS” for MP3s? a. decrease in price of MP3s b. increase in price of MP3s c. decrease in MP3 resource cost d. producer expectations of a price increase5. An increase in the price of asparagus will (increase/decrease) the supply of the alternative outputalternative output peas.6. A 50% decrease in the price of “computer chips”“computer chips” will (increase/decrease) the (supply/QS) for “computers”.“computers”.7. Which would cause an “increase in supply”“increase in supply” for MP3 Players? a. increase in wages for MP3 Player workers. b. subsidies($100 per computer) are given to MP3 Player companies. c. subsidies for MP3 Player makers being taken away.