Question

name date: ap macroeconmics section 4: graphing supply and demand instructions: use economic analysis to determine what happens to the price and quantity of computer games in each scenario. for shifters use the list from your notes # change graph economic analysis 1 it becomes known that an electronics store is going to have a sale on their computer games 3 months from now. 1 draw and label equilibrium 2 the change supply or demand increase or decrease shifter 3 after price quantity 2 the workers who produce the computer games go on strike for over two months 1 draw and label equilibrium. 2 the change. supply or demand increase or decrease shifter 3 after: price quantity 3 when the average price of movie tickets rises, it influences the purchase of computer games. (analyze computer games.) 1 draw and label equilibrium. 2 the change supply or demand increase or decrease shifter 3 after price quantity 4. the workers who produce the computer games negotiate a $20 per hour wage increase. 1 draw and label equilibrium. 2 the change supply or demand increase or decrease shifter 3. after price quantity 5. a reputable private research institute announces that children who play computer games also improve their grades in school. 1 draw and label equilibrium: 2. the change: supply or demand increase or decrease shifter 3. after price quantity 6. because of the use of mass production techniques, workers in the computer game industry become more productive 1. draw and label equilibrium 2. the change supply or demand increase or decrease shifter 3. after: price quantity

Explanation:

Problem 1

Step1: Analyze Demand Shifter

Consumers expect lower prices (sale) in future, so current demand for computer games decreases. Shifter: Expectations.

Step2: Determine Price and Quantity

With demand decrease (left shift), equilibrium price decreases, quantity decreases.

Step1: Analyze Supply Shifter

Worker strike reduces production capacity, so supply of computer games decreases. Shifter: Number of Sellers/Production Disruption.

Step2: Determine Price and Quantity

With supply decrease (left shift), equilibrium price increases, quantity decreases.

Step1: Analyze Demand Shifter

Movie tickets and computer games are substitutes (both for leisure). Higher movie ticket prices increase demand for computer games. Shifter: Price of Related Goods (Substitutes).

Step2: Determine Price and Quantity

With demand increase (right shift), equilibrium price increases, quantity increases.

Answer:

1. Equilibrium: Intersection of initial supply (S) and demand (D) curves, labeled \( P_e, Q_e \).
2. Change: Demand, Decrease, Shifter: Expectations (of future lower prices).
3. After: Price \(\boldsymbol{\text{Decreases}}\), Quantity \(\boldsymbol{\text{Decreases}}\)

Problem 2