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| |Changes in Supply and Demand |
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| |High School Subject: Geography/Gov/Econ |
| |Social Studies - Economics |
| |ID # 1532 |
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| |Core Content |
| |SS-H-3.3.1 - Numerous factors influence the supply and demand for products (e.g., supply - technology, cost of inputs, number of |
| |sellers; demand - income, price of similar products, consumers’ preferences). |
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| |Prompt |
| |In the US economy, people demand goods and/or services, businesses supply them and the balance of supply and demand determines |
| |the price. This cycle fluctuates based on external factors. |
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| |Instructions |
| |Choose one scenario from the following and explain how and why supply, demand and price would be affected. |
| |- On her national talk show, Oprah Winfrey speaks negatively about the cattle industry by stating she will not eat beef for fear |
| |of contracting mad cow disease. |
| |- The government decides not to regulate the downloading of music from the Internet. The recording industry voices its concern |
| |about the future of CD sales. |
| |- Florida orange growers produce a bumper crop this year. Grocers are stocked to the rafters with products made from oranges. |
| |- Michael Jordan has agreed to endorse a new brand of tennis shoe. Because of this endorsement, the shoes become very popular and|
| |stores are having difficulty keeping the shoes in stock. |
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| |Examples to Look for in a Student Response |
| |Scenario One: |
| |Beef demand decreases, beef supply increases, prices decrease |
| |Scenario Two: |
| |Demand for CDs decrease, supply of CDs increases, prices decrease |
| |Scenario Three: |
| |Supply of orange products increase, demand for orange products remains the same, prices decrease. |
| |Scenario Four: |
| |Demand for shoe increases, supply of shoes decrease, prices of shoe increase, |
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| |Scoring Guide |
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| |4 -Student accurately explains how and why supply demand and price are affected. Answer demonstrates in-depth understanding of |
| |the supply-demand-price relationship. |
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| |3 -Student accurately explains how and why supply demand and price are affected. Answer demonstrates basic understanding of the |
| |supply-demand-price relationship. |
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| |2 -Student accurately explains how and why supply demand and price are affected. Answer is vague and/or inaccurate |
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| |1 -Student accurately explains how and why one (supply, demand,or price) are affected. Answer lacks detail and accuracy of the |
| |supply-demand-price relationship. |
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|Student Page |
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|If you have questions or comments regarding this item, please send email to: |
|orib@jefferson.k12.ky.us |
|Please include the ID# of this item in the subject line of the email. |
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