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Name __________________________Module 6 Featured Worksheet 1Market Changes in SupplyIn this worksheet, you will be given several different scenarios that occur to a market that was in equilibrium before this scenario occurred. For each scenario, you must: Graph the new situation so that it shows the change that occurred.Circle where indicated whether there has been a change in supply, or a change in quantity supplied. Explain the reason for the change.Be sure to show the new equilibrium price and quantity points on your graph.The cost of the eggs and milk used to make cakes at the local bakery increases. What happens in the bakery market for cakes?4976361527720CakesGraph:What changes: S or Qs?Why?There is a new invention that makes hot chocolate and chocolate milk in an automatic processor before adding marshmallow whipped cream that is extremely efficient and cost effective. What happens in the manufacturers market? 58048527005Hot ChocolateGraph: What changes: S or Qs?Why?Continued on the following pageA new producer of cookies enters the industry. What happens in the market for cookies?70485077470CookiesGraph:What changes: S or Qs?Why?Producers expect the cost of their raw materials to increase in four months. What happens in the market for the supplier today?65722569215BrowniesGraph:What changes: S or Qs?Why?The price of an ice cream cone sold by an ice cream truck goes up 10 cents a cone. What happens in this market from the supplier’s point of view?81915023495Ice CreamCones Graph:What changes: S or Qs?Why?Module 6 Featured Worksheet 1Market Changes in SupplyAnswer KeyNote to faculty: Again the demand curve has been omitted from student worksheets and included here for your reference.In this worksheet, you will be given several different scenarios that occur to a market that was in equilibrium before this scenario occurred. For each scenario, you must: Graph the new situation so that it shows the change that occurred.Circle where indicated whether there has been a change in supply, or a change in quantity supplied. Explain the reason for the change.Be sure to show the new equilibrium price and quantity points on your graph.The cost of the eggs and milk used to make cakes at the local bakery increases. What happens in the bakery market for cake?914400114935CakeGraph:What changes: S or Qs? SWhy? Cost of inputsThere is a new invention that makes hot chocolate and chocolate milk in an automatic processor before adding marshmallow whipped cream that is extremely efficient and cost effective. What happens in the manufacturers market? 7936301488660Hot ChocolateGraph:What changes: S or Qs? SWhy? Change in technologyA new producer of cookies enters the industry. What happens in the market for cookies?8281361498950CookiesGraph:What changes: S or Qs? SWhy? Number of producersProducers expect the cost of their raw materials to increase in four months. What happens in the market for the supplier today?828675123825BrowniesGraph:What changes: S or Qs? SWhy? Change in expectationsThe price of the ice cream cone sold by the ice cream truck goes up 10 cents a cone. What happens in this market from the supplier’s point of view?80010057785Ice CreamCones Graph: What changes: S or Qs? QsWhy? Change in price of the product ................
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