Price Elasticity and Supply & Demand

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 |Demand (left)-Because of damaging |Quantity and price will both decrease.|

| | |effects of a hurricane, tourists are | |

| | |not as likely to visit the area. | |

|Cost of cotton decreases |Clothing or Textile Industry |Supply (right) |Quantity will increase and price will |

| | |Demand (left)-There would be more |decrease. |

| | |cotton available (supply) and more | |

|...