Professional Documents
Culture Documents
Ms. Walker
Supply Shifters(6):______________________________________________________________________
Equilibrium Price:______________________________________________________________________
Equilibrium Quantity:___________________________________________________________________
Elasticity:_____________________________________________________________________________
Marginal Utility:_______________________________________________________________________
A shortage results when prices are too_____________and quantity supplied is greater/lesser than
quanitity demanded.
A surplus results when prices are too______________and quantity supplied is greater/lesser than
quantity demanded.
2. price ceilings____________________________________________________________
3. excise taxes_____________________________________________________________
P
S
$1300
D
Q
Qe
The price at which supply and demand are in balance is known as:________________________________
The equilibrium price of Mac Pro laptops is $1300. Because of stiff competition in the tablet market,
Apple decides to drop all their prices by 10% but does not change their production plans. The effect on
the market for Mac pro laptops is:
Indicate the letter of the graph which best illustrates changes to the equilibrium price and quantity for each
situation given. You may use a graph more than once.
D1 D
D D
D D1
Q Q Q Q
Which graph shows a decrease in equilibrium price but an increase in equilibrium quantity?
a. Graph A b. Graph B c. Graph C d. Graph D
Which graph shows an increase in equilibrium price but a decrease in equilibrium quantity?
a. Graph A b. Graph B c. Graph C d. Graph D
Which graph shows a decrease in equilibrium price and a decrease in equilibrium quantity?
a. Graph A b. Graph B c. Graph C d. Graph D
Market Structures
Collusion:_____________________________________________________________________________
Cartel:________________________________________________________________________________
What examples can you think of that fall under the category of oligopoly, where a few companies dominate the
market, would be an example of which type of market structure?
______________________________________________________________________________________
As it becomes easier to start a new business in a market, what effect is there on competition?
______________________________________________________________________________________
Positive Externality:______________________________________________________________________
Negative Externality:_____________________________________________________________________
Why doesn’t the market system work to provide street lighting and other public goods?
_____________________________________________________________________________________