Question

part 2 - supply and demand exam
directions: please make sure to properly label your graphs, including price, quantity, the demand curve, the supply curve, and the arrows indicating the shifts or changes in demand/supply
question 1
graph and the following scenario:
an infestation of bugs attacks roses across the country. what will happen to the supply of rose corsages for prom?
question 2
graph and the following scenario:
the workers who harvest grapes go on strike due to unsafe working conditions. what will happen to the supply of grapes?
question 3
graph and the following scenario:
the price of fidget spinners falls. what will happen to the supply of fidget spinners?
question 4
graph and the following scenario:
the price of corn syrup, which consumers use with pecans to make pecan pies, has risen. what will happen to the demand for pecans?

Explanation:

Question 1

Step1: Analyze impact on supply

The bug - infestation reduces the number of roses available. This leads to a decrease in the supply of rose corsages.

Step2: Graph shift

On a supply - demand graph with price (P) on the vertical axis and quantity (Q) on the horizontal axis, the supply curve for rose corsages shifts to the left.

Question 2

Step1: Analyze impact on supply

The grape - harvesting workers' strike means less labor is available for grape harvesting, reducing the supply of grapes.

Step2: Graph shift

On a supply - demand graph for grapes, with price (P) on the vertical axis and quantity (Q) on the horizontal axis, the supply curve shifts to the left.

Question 3

Step1: Analyze impact on supply

According to the law of supply, a decrease in the price of fidget spinners leads to a movement along the supply curve. Producers are less willing to supply at the lower price, resulting in a decrease in the quantity supplied.

Step2: Graph movement

On a supply - demand graph for fidget spinners, with price (P) on the vertical axis and quantity (Q) on the horizontal axis, there is a downward movement along the supply curve.

Question 4

Step1: Analyze relationship

Corn syrup and pecans are complementary goods for making pecan pies. When the price of corn syrup rises, the cost of making pecan pies increases.

Step2: Analyze demand change

Consumers will demand fewer pecan pies, and thus the demand for pecans will decrease. On a supply - demand graph for pecans, with price (P) on the vertical axis and quantity (Q) on the horizontal axis, the demand curve shifts to the left.

Answer:

Question 1: The supply of rose corsages decreases, and the supply curve shifts to the left on the graph.
Question 2: The supply of grapes decreases, and the supply curve shifts to the left on the graph.
Question 3: The quantity supplied of fidget spinners decreases, and there is a downward movement along the supply curve on the graph.
Question 4: The demand for pecans decreases, and the demand curve shifts to the left on the graph.