This document contains a series of questions and graphs related to economics topics like supply and demand, markets, and price controls. The questions ask students to analyze how different markets would be affected by changes in price, quantity supplied/demanded, income, costs of production, and other factors. The graphs show supply and demand curves for various goods and the impact of shifts on the equilibrium price and quantity. Students are asked to interpret the graphs and explain causal factors for observed changes in the markets.

1. On slates
1. If you could attend any college in the
US where would it be?
2. Why did you pick that college?
3. Do you think college is too expensive?
4. What 2 things would happen if the
state of AZ lowered the price of
college classes to $50 per class?

2. In your notes
Find the equilibrium price of 1 roll of toilet
paper
Price Quantity
Supplied
Quantity
DemandedPrice
$0.50
$ 1.00
$ 1.75
$ 2.25
$ 3.00
100
300
700
900
1500
$ 0.25
$ 0.50
$ 1.00
$ 2.25
$ 3.00
1500
900
600
400
300
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
2. Why might a politician
argue this isn’t a fair
price for large families?

3. Toilet paper
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
D
S
P
Q

4. At your tables
Say the government, to help large families, made it
illegal for the price to be higher than $0.50 per roll.
1. What would happen to the amount of toilet paper people
would want to buy?
2. What would happen to the amount of toilet paper producers
would want to sell?
3. What would happen to the number of sheets per roll?
4. What would happen to the texture of the toilet paper?
5. What other markets might be effected? (paper products?)
6. Who would get first chance at buying the toilet paper?
7. What would happen to the level of corruption in the country?

5. Toilet paper
0
0.25
0.5
0.75
1
1.25
1.5
1.75
2
2.25
2.5
2.75
3
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500
D
S
P
Q

6. Surely no country would try this….

9. Price Ceiling
Designed to help
consumers
Illegal to charge
higher than the
price
Example:
Venezuela TP
Problems?
Quality
Shortages

10. Price Ceiling
Designed to help
consumers
Illegal to charge
higher than the price
Example: Rent
Controls
Problems?
Quality
Show rent control
clip

11. Hand out worksheet

12. On slates
1. List 4 jobs you could do without any special
skills
2. List 4 jobs you could do that require skills,
licenses or education

13. Types of labor
• Skilled labor: require skills, licenses or
education
• Salary?
• Give 3 examples
• Unskilled labor: lower human capital,
physical, entry level
• Salary?
• Type of person?
• Give 3 examples
Who are you right now? In 10 years?
Students, low skilled immigrants, uneducated
Professionals, skilled immigrants, educated

15. Germany lacks
a min wage
Around the World

16. Conclusion?

17. Minimum Wage Graph
• Price floor on unskilled labor market
• Subway test,
• $5/hour
• $7/hour,
• $10/hour,
• $15/hour,
• $25/hour,

18. Minimum Wage assignment• Read both articles
• Identify 2 main ideas from each
side
• Write a 2 paragraph letter to
your congressman asking them
to vote FOR or AGAINST the
$15/minimum wage
Walter Williams
Elizabeth Warren
Congressman Grijalva
Outline:
PG 1 – intro/background
debate sides, main
ideas
PG 2 – How do you
think they should
vote? Support with
economic ideas
Congresswoman….

19. Exam Review
1. Why do you think companies
would rather sell products with
an inelastic demand? (hint
look at the Y-axis of your graph)

21. What is the price when this market is
at equilibrium?
A. Around 33
B. Around $ 3.25
C. Around $ 2.25
D. Around p *
P

22. Economists would describe this demand
curve as:
A. elastic
B. inelastic
C. quantity
D. inferior

23. How many more goods will this company sell
if they lower the price from $1 to $0.75?
A. 3
B. 6
C. 9
D. 12

24. Which of the following goods would
most likely have this sort of demand?
A. Toilet paper
B. Hot cheetos
C. Water on a 110+
degree day
D. Lifesaving drugs

25. Economists would describe this
demand curve as:
A. elastic
B. inelastic
C. quantity
D. inferior

26. Which good matches this demand
curve?
A. Rims for a truck
B. hamburgers
C. Plastic surgery
D. Water on a 110+
degree day

27. How many FEWER goods would this
company sell if they raised their price
from $0.50 to $1?
A. 4
B. 3
C. 2
D. 1

28. Tickets to the movies have a more
elastic demand curve, so if a company
wanted to increase their revenue, they
should:
A. Raise their price
B. Lower their price
C. Keep their price the same
D. Consider the substitutes

29. Lifesaving, pharmaceutical drugs have an
inelastic demand curve, so if a company
wanted to increase their revenue, they
should:
A. Raise their price
B. Lower their price
C. Keep their price the
same
D. Consider the
substitutes

30. What probably caused this change?
A. Bus ridership
increases
B. New car sales
decline
C. Unemployment
decreases
D. Consumers buy
more SUV’s
Gasoline
Price
Quantity

31. What probably caused this change?
A. Price of pizza
increased
B. Population of
Tucson
decreased
C. Price of soda
increased
D. Average
income in
Tucson
decreased
Tacos

32. What probably caused this change?
A. Price of new
clothing
decreased
B. Population of
Tucson
decreased
C. Price of used
clothing
increased
D. Average income
in Tucson
decreased
Used Clothing

33. What probably caused this change?
A. Bus ridership
increases
B. Tablet
computer sales
increase
C. Unemployment
decreases
D. Pencil prices
decrease
Notebook paper
Price
Quantity

34. What probably caused this change?
A. Average income in
Tucson decreased
B. Population of
Tucson decreased
C. Price of Pepsi
decreased
D. Price of Coke
increased
Pepsi

35. What probably caused this change?
A. Average
income in US
decreased
B. Number of
new
brokerage
accounts
triples in US
C. Sales of
iphone
decline
D. Sales of
Blackberry’s
increase
Shares of
Apple stock

36. What is the price when this market is at
equilibrium?
A. Around 40
B. Around $ 6
C. Around $ 3
D. Around $ 30
P
Q
S
D
Widgets

37. How many widgets will be supplied in this
market when the price is $8?
A. Around 40
B. Around 50
C. Around 30
D. Around $ 30
P
Q
S
D
Widgets

38. What might explain this change?
A. Average US
income
increased
B. Average US
income
decreased
C. Population of
US decreases
D. New car
company
begins
operation
Q
S
D
Widgets
New cars

39. Based on the change in this graph, which
outcome is true?
A. Price of cars will
increase
B. Price of cars will
decrease
C. There will be no
change
D. Quantity of cars
will decrease Q
S
D
Widgets
New cars

40. Based on the change in this graph, which
outcome is true?
A. Two car
companies
merge
B. A new Korean
car company
begins selling
cars in the US
C. Price of oil
increases
D. Price of steel
increases
Q
S
D
Widgets
New cars
New cars
S
D

41. Based on the change in this graph, which
outcome is true?
A. Price of cars
will increase
B. Price of cars
will decrease
C. There will be
no change
D. Quantity of
cars will
decrease
Q
S
D
Widgets
New cars
New cars
S
D

42. Based on the change in this graph, which
outcome is true?
A. Car companies
think price of cars
will decline next
year
B. Demand for new
cars increased
C. Wages of
autoworkers
decreased
D. Wages of
autoworkers
increased
Q
S
D
Widgets
New cars
New cars
S
D
New cars

43. Which graph shows the effect of an increase in
immigration on the used car market?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Graph A
Graph B
Graph D
Graph C

44. Which graph shows the effect of more
expensive gasoline on SUV’s?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Graph A
Graph B
Graph D
Graph C

45. Which graph shows the effect of a decrease in the
price of jet fuel on the airline ticket market?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Graph A
Graph B
Graph D
Graph C

46. Which graph shows a decrease in equilibrium
price and an increase in quantity?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Graph A
Graph B
Graph D
Graph C

47. Which will probably happen after the US
Airways/American Airlines merger?
A. Lower prices
B. Higher prices
C. No change
D. They will become
an inferior good

48. Which will probably happen if the price of jet fuel
declines to the price of airline tickets??
A. Lower prices
B. Higher prices
C. No change
D. They will
become an
inferior good

49. Which graph shows the effect of a decrease in income
taxes on the airline ticket market?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Graph A
Graph B
Graph D
Graph C

50. Smartphone market: Blackberry files for
bankruptcy
A. Prices
increase
B. Prices
decrease
C. No change
D. Quantity will
increase

51. Smartphone market: plastic prices double
A. Prices increase
B. Prices decrease
C. No change
D. Quantity will
increase

52. Smartphone market: Data plan prices increase
A. Prices increase
B. Prices decrease
C. No change
D. Quantity will
increase

53. Smartphone market: Producers expect the price of
smart phones to drop next year
A. Prices increase
B. Prices decrease
C. No change
D. Quantity will
decrease

54. Smartphone market: New iphone commercials
featuring Pittbull
A. Prices increase
B. Prices decrease
C. No change
D. Quantity will
decrease

55. Flatscreen tv market: trade agreements allow
producers to use cheaper labor in South Korea
A. Prices increase
B. Prices decrease
C. No change
D. Quantity will
decrease

56. Flatscreen tv market: Producers expect the price
of TVs to decline next year.
A. Prices increase
B. Prices decrease
C. No change
D. Quantity will
decrease

57. Apartment market: Consumers start buying
houses again due to bull market
A. Prices increase
B. Prices decrease
C. No change
D. Quantity will
increase