1. Bellringer
1. Graph the supply & demand of pizzas
2. What is the price where they cross?
3. Describe the situation if the price is $20
Price Quantity
Demanded
Quantity
Supplied
$25 100 800
$20 200 700
$15 300 600
$10 450 500
$5 650 400
2. Why do stock prices change?
• Usually demand, show on board
3.
4. Prices, not always “fair”, but they are
“equal”
• Equilibrium Price
• The price where
supply meets
demand
• On the graph, its
where the D and S
curves cross
• No shortage, no
surplus
S
D
5. #4 5th hour flip flops Think back to
yesterday- Graph it to find the EQprice
Price Q – Demand Q – Supply
$4 22 8
$5 18 11
$6 16 14
$7 11 18
$8 8 22
$9 4 25
15. Short quiz
Graph the change to the orange market in the following
situations, label the change to price and quantity at
equilibrium.
1. New fertilizer increase orange crop yields 20%
2. US consumers think price of oranges will decrease
next month
3. Orange juice medically proven help lose weight
4. Hurricane destroys Florida agricultural land
16. Graph the change to the ice cream market in the
following situations, label the change to price and
quantity at equilibrium.
• US median income increases 3%
• Price of sugar plummets to new low
• Mexican producers increase exports to US
• Price of cones increases 5%
17. Graph the change to the college textbook
market in the following situations, label the
change to price and quantity at equilibrium.
• FAFSA awards increase by 5%
• Grand Canyon Univ builds new Mesa campus
• New book publisher opens factory in Malaysia
• Textbooks able to be downloaded onto Kindle
or ipads
18. Graph the change to the Puerto Peñasco hotel
market in the following situations, label the
change to price and quantity at equilibrium.
• New hotel opens on the water
• Hotel industry magazine reports Mexican
vacations cheaper in 2015 after Peso
devaluation
• Cartel shootout kills 5 people
• Average Cancun hotel price declines
19. Graph the change to the basketball shoe
market in the following situations, label the
change to price and quantity at equilibrium.
• New Kevin Durant shoe released
• Nike opens new Vietnamese factory
• Soccer becomes more popular in USA
• New sewing machines work 50% faster
20. Graph the change to the health insurance
market in the following situations, label the
change to price and quantity at equilibrium.
• US government requires all Americans to have
health insurance
• US government makes providing health insurance
more expensive
• US government lowers income tax rates
• Fewer companies provide health insurance in US
21. Graph the change to the used clothing market in
the following situations, label the change to price
and quantity at equilibrium.
• Unemployment rate drops 1%
• Rap song celebrating thrift stores becomes #1 hit
song
• New clothing prices decline
• Outbreak of lice found at Salvation Army store
22. On slates
Identify the changes to the
tomato market by drawing
the graph and identifying
the part of TRIBE or PEST
that changed.
1. Pesticides are outlawed
in the United States
2. People in US try to eat
healthier and eat more
salads
3. US signs a free-trade
deal with India
25. Supply/Demand project (50points)
• Choose a market that interests you
• Identify 3 major corporations involved in the market (-5 if missing)
• Explain whether the demand is elastic or inelastic (-10 if missing, -5 if
not explained correctly)
• Evaluate the effect of a government price ceiling on your market (-5 if
missing)
• Find two articles that affect that market’s supply or demand curves (-
10 for no citation)
• Cite your sources, use the Economist or your phone, MLA format
• Draw a graph for each article and short explanation of change ,
explain what happens to EqP, identify the determinant that changes
(PEST = Supply, TRIBE = Demand) (-2 for each mistake)
• Show the change to secondary market, could be a complement,
substitute, or factor of production (-10 if missing)
• Must be color and include a few pictures (-10 if missing)
• Make either a color poster or pamphlet, or website
29. 10 minutes, partners
a. Which curve would shift? (S or D)
b. Which direction? (left or right)
c. What happens to equilibrium price? (increase or decrease)
4. Market: college tuition (AZ population doubles)
5. Market: Sonoran hotdogs (Man vs. Food visits
Tucson)
6. Market: DVD rentals (2008-10)
7. Market: flat screen tvs (2012), What has been happening to
Eqp?
8. Market: Seattle Seahawks tickets (2014)
9. Market: Cellphone service (after iphone, blackberry, droid)
10. Market: Apple stock (Apple announces record profits)
11. Market: Facebook stock (FB becomes publically traded)
30. Slates
1. How old do you think the video game
industry is?
2. What type of good is a video game?
(inferior or normal?)
3. List two substitutes for video games.
31. Video Games
• New in 1975
• $10.3 Billion in 2010
Electronic Arts Inc.
(Public, NASDAQ:ERTS)
Nintendo Co., Ltd (ADR)
(Public, OTC:NTDOY
Take-Two Interactive Software, Inc.
(Public, NASDAQ:TTWO
Activision Blizzard, Inc.
(Public, NASDAQ:ATVI
32. Mid term exam review
• ½ sheet ok, also save it for Final Exam review
• Shifts to S/D
• TRIBE & PEST
• Equilibrium price
• Inferior vs. normal goods
• Complements vs. subs
• PPF graph
• Opportunity costs
• Scarcity
• Entrepreneurs
• 3 factors of production
• Revenue Maximization
• Elasticity (& its graph)
• Bull vs. bear market
• NYSE
• Brokerage account
• Stock prices (52 wk
high/low)
• Diminishing Marginal
Returns
• Invisible hand
• Price floors
• Price ceilings
