Microsoft Word - Sp 21 Takehome Quiz #1 - Using the Supply:Demand Model .docx
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3. Based on question 2 above, when using the supply and demand model, this will cause the following
change in the market for agricultural good
a. A shift of the demand curve and a movement along the supply curve
. A shift of the supply curve and a movement along the demand curve
c. Neither will shift.
d. Not enough information given.
Questions 4 to 6
XXXXXXXXXXMarket for Jewelry WSJ( Jan 22, 2014) reported that , “.. sales in luxury watches are slowing down
XXXXXXXXXXespecially among XXXXXXXXXXyear-olds . Switzerland’s watch companies are therefore turning to the higher
XXXXXXXXXXprofit margins of the jewelry business . “
4. In this snippet , ‘’turning to the higher profit margins of the jewelry business …..” is
a. the real life example and the variable would be ‘no. of sellers’
. the real life example and the variable is ‘no. of buyers’
c. the real life example and the variable is ‘income’
d. the real life example and the variable is ‘price of substitute goods’
5. Consider question # 4 above. Using supply and demand graphs , which accurately traces the
changes described in the market for jewelry ?
a. demand for jewelry will shift
b. supply of jewelry will shift
c. demand and supply will shift
d. no shifts .
6. Now consider the Market for watches . Based on the snippet for Questions 4-6 above, and using the
panel of supply and demand graphs shown below labeled (a) to (d), which panel accurately traces
the changes described in the market for watches ?
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7. Refer to the 14 snippets in the front page of WSJ newspaper that is in Handout #1 page 3. Find a
microeconomic news item among the snippets that reflects a shift in supply. Rewrite the news
snippet here then answer questions parts ‘a’ and ‘b below:
Snippet _________________________________________________________________________
______________________________________________________________________________
XXXXXXXXXX________________________________________________________________________________
XXXXXXXXXXa. In my opinion, the Real-life example in this news item is ________________________________
XXXXXXXXXXb. In my opinion the Variable causing the supply shift is ___________________________and the
XXXXXXXXXXCurve shifts (left; right)
8. Consider the market for College enrollment. If the Real Life example is:
a. Increase in Financial Aid, then the variable would be __________________
. Lower Tuition, then the variable would be __________________
c. Increase in textbook prices, then the variable would be __________________
d. Unemployment increases, then the variable would be __________________ because ( give
eason in space below)
9. American Car market Feb 2021 The value of the Euro continues to lose against the dollar ( 1 US =
1.08 Euros a year ago , whereas Feb 22 it is 1.21 Euros ) . Would this hurt or benefit the market for
American Cars? Use words to describe what is changing graphically , by explaining how and why
using the terms ‘variable’ . Conclude by saying if you expect a surplus or a shortage to be occur
initially. Write in space below
.
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10-12 Graphing : Graph here or on a sheet of paper then take photo and upload.
10. Market for Recreational Vehicles/Motorcycles. According to an article in the Wall Street Journal,
President Trump’s policy in March 2018 of imposing tariffs on the importation of foreign- made
metal affected American-made recreational vehicles. Some companies like Harley Davidson and
Winnebago, even relocated a big part of their production to Europe. Using supply and demand show
graphically what we can predict would happen to the price and quantity bought and sold in this
market .
11. Market for Italian motorcycles/ RVs in the US Based on the snippet in question 10 regarding the
domestic RV/motorcycles, show using supply and demand graphs why prices for the Italian RVs and
motorcycles in the U.S. increased. Explain in writing what you are showing graphically.
12. Orange juice market. Aug 2016. It was reported then: “ Orange juice continues to fall out of favor as
a beverage , and though the quantity of retail sales did fall to lower levels in the last months in the
US, the prices of orange juice did not. Give a possible explanation using supply and demand graphs.