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Supply and Demand practice baseball gloves
- 1. For additional practice, work the following problems without cheating and looking at the answers. Be sure to draw the diagrams and label them with price, quantity, initial price, initial quantity, which curve is which, which is the original and the new curve etc. Our three step process will be very useful here! (curve? direction? result?) Suppose we are analyzing the market for baseball gloves, what happens to price and quantity when: More kids move to town and join little league. PETA successfully lobbies to get laws put in place for more humane treatment of cows and the price of leather increases.
- 2. Major League Baseball goes through a steroid scandal and baseball becomes less popular. PETA successfully lobbies to get laws put in place for more humane treatment of cows and the price of leather increases and Major League Baseball goes through a steroid scandal and baseball becomes less popular.
- 3. The price of basketballs falls. Registration fees for little league increase.
- 4. Incomes of families in Wilmington increase. (what assumption have you made?) Spalding comes up with a new way to automate glove manufacturing and reduce their costs of making gloves.
- 5. The price of video games increases. Wilmington has an unusually wet spring and summer with lots of rain.
- 6. Academy sports opens a store in Wilmington to compete with Dick’s Sporting Goods. Wilmington has an unusually wet spring and summer with lots of rain and Academy Sports opens a store in Wilmington to compete with Dick’s Sporting Goods.
- 7. During the middle of the summer consumers expect gloves to go on sale in a few weeks as fall approaches. A new study comes out showing that people who play little league have higher lifetime earnings.
- 8. Sellers expect that when following the fourth of July baseball will increase in popularity and price will increase. The price of baseballs falls.
- 9. The price of baseballs falls and Spalding figures out how to automate production and save costs.
- 10. For additional practice, work the following problems without cheating and looking at the answers. Be sure to draw the diagrams and label them price, quantity, initial price, initial quantity, which curve is which, which is the original and the new curve etc. Suppose we are analyzing the market for baseball gloves, what happens to price and quantity when: More kids move to town and join little league. PETA successfully lobbies to get laws put in place for more humane treatment of cows and the price of leather increases. P Q S D P2 P0 Q0 Q2 D2 1. Demand 2. Shifts Right 3. Price Increases Quantity increases P Q S D P2 P0 Q0 Q2 S2 1. Supply 2. Shifts Left 3. Price Increases Quantity Decreases
- 11. Major League Baseball goes through a steroid scandal and baseball becomes less popular. PETA successfully lobbies to get laws put in place for more humane treatment of cows and the price of leather increases and Major League Baseball goes through a steroid scandal and baseball becomes less popular. P0 P Q S D P2 Q0 Q2 D2 1. Demand 2. Shifts Left 3. Price Decreases Quantity Decreases P Q S D Q2 P0 Q0 S2 1. Supply and Demand 2. Supply Shifts Left Demand Shifts Left 3. Price is Ambiguous Quantity decreases D2
- 12. The price of basketballs falls. Registration fees for little league increase. P0 P Q S D P2 Q0 Q2 D2 1. Demand 2. Shifts Left 3. Price Decreases Quantity Decreases P0 P Q S D P2 Q0 Q2 D2 1. Demand 2. Shifts Left 3. Price Decreases Quantity Decreases
- 13. Incomes of families in Wilmington increase. (what assumption have you made?) Spalding comes up with a new way to automate glove manufacturing and reduce their costs of making gloves. P Q S D P2 P0 Q0 Q2 D2 1. Demand 2. Shifts Right 3. Price Increases Quantity increases P Q S D P2 P0 Q0 Q2 S2 1. Supply 2. Shifts Right 3. Price Decreases Quantity Increases
- 14. The price of video games increases. Wilmington has an unusually wet spring and summer with lots of rain. P Q S D P2 P0 Q0 Q2 D2 1. Demand 2. Shifts Right 3. Price Increases Quantity increases P0 P Q S D P2 Q0 Q2 D2 1. Demand 2. Shifts Left 3. Price Decreases Quantity Decreases
- 15. Academy sports opens a store in Wilmington to compete with Dick’s Sporting Goods. Wilmington has an unusually wet spring and summer with lots of rain and Academy Sports opens a store in Wilmington to compete with Dick’s Sporting Goods. P Q S D P2 P0 Q0 Q2 S2 1. Supply 2. Shifts Right 3. Price Decreases Quantity Increases P Q S D P2 P0 Q0 S2 1. Supply and Demand 2. Supply Shifts Right Demand Shifts Left 3. Price Decreases Quantity is Ambiguous D2
- 16. During the middle of the summer consumers expect gloves to go on sale in a few weeks as fall approaches. A new study comes out showing that people who play little league have higher lifetime earnings. P Q S D P2 P0 Q0 Q2 D2 1. Demand 2. Shifts Right 3. Price Increases Quantity increases P0 P Q S D P2 Q0 Q2 D2 1. Demand 2. Shifts Left 3. Price Decreases Quantity Decreases
- 17. Sellers expect that when following the fourth of July baseball will increase in popularity and price will increase. The price of baseballs falls. P Q S D P2 P0 Q0 Q2 S2 1. Supply 2. Shifts Left 3. Price Increases Quantity Decreases P Q S D P2 P0 Q0 Q2 D2 1. Demand 2. Shifts Right 3. Price Increases Quantity increases
- 18. The price of baseballs falls and Spalding figures out how to automate production and save costs. P Q S D Q2 P0 Q0 S2 1. Supply and Demand 2. Supply Shifts Right Demand Shifts Right 3. Price is Ambiguous Quantity IncreasesD2