Supply and Demand Shifts Practice
Directions: Use the graphs below to mark the proper shift in supply or demand. Also indicate the price effect on certain
questions.
2-
4-
3
保发区区
1 2 3 4 567
Quantity
2-
1 2 3 4 5 6 7
1 2 3 4 5 6
Quantity
Quantity
1. How did the invention of the assembly line affect automobile production?
B) Did the price of automobiles increase or decrease as a result of the assembly line?
2. How does Halloween impact consumer demand for candy?
B) What happens to the price of candy in the days after Halloween?
$
1 2 3 4 5 6 7
Quantity
3. What happens to demand for Verizon services if T-Mobile, a rival and substitute, lowers their price?
4. What happens to gold production if several new large scale mining operations open in the United States?
B) What effect would this have on the price of gold?
5. What happens to consumer demand for iPhone cases if iPhones go on a nationwide sale?
6. What happens to gasoline production if the federal government issues a huge tax increase called a "carbon tax"
on producers of gasoline and other fossil fuels?
B) What effect would the carbon tax have on the price of a gallon of gasoline?
7. What happens to textile production in Egypt if the government invests in textile vocational programs at the high
school level?
B) What price effect would this scenario have on textiles?
8. What happens to short run demand for lumber if consumers think the price of lumber will rise in the long run?
Make up a scenario for demand and provide a correct answer.
D. Make up a scenario for supply and provide a correct answer.
