Demand and Supply Practice Use Economic Analysis to determine what happens to the price and quantity of computer games in each scenario. # 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 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 has an effect on the purchase of computer games. (Analyze computer games.) 1. Draw and Label Equilibrium: 2. The Change: Supply or Demand Increase or Decrease Shifter 3. Price _____ Quantity_____ 4. The workers who produce the computer games negotiate a $20 per hour wage increase. At the same time, the price of video games fall. (Double Shift) 1. Draw and Equilibrium: 2. The Change: Demand- Left or Shifter- Supply- Left or Right Shifter- 3. After: Price _____ Quantity_____ 5. The price of software used by computer game producers rises. At the same time, a study released by the US Department of Health shows that children need more exercise. (Double Shift). 1. Draw and Equilibrium: 2. The Change: Demand- Left or Right Shifter- Supply- Left or Right Shifter- 3. After: Price _____ Quantity_____ 6. 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. Price _____ Quantity_____
7. 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_____ 8. The price of home computers decreases significantly. (Analyze computer games.) 1. Draw and Label Equilibrium: 2. The Change: Supply or Demand Increase or Decrease Shifter 3. After: Price _____ Quantity_____ 9. The Federal government imposes a $5 per game tax on the manufacturers of the games. At the same time, the government reduces income tax by 3%. (Double shift) 1. Draw and Label Equilibrium: 2. The Change: Demand- Left or Right Shifter- Supply- Left or Right Shifter- 3. After: Price _____ Quantity_____ 10 The manufacturer of the computer games raises the price on the games. 1. Draw and Label Equilibrium: 2. The Change: Supply or Demand Increase or Decrease Shifter 3. After: Price _____ Quantity_____ 11 In order to promote American production, Congress provides a subsidy to game producers. At the same time schools decided to use games as a way to teach computer skills. (Analyze only American firms. DOUBLE SHIFT) 1. Draw and Label Equilibrium: 2. The Change: Demand- Left or Right Shifter- Supply- Left or Right Shifter- 3. After: Price _____ Quantity_____ 12 A large firm enters the game business with a new line of games. (Analyze the whole game industry) 1. Draw and Label Equilibrium: 2. The Change: Supply or Demand Increase or Decrease Shifter 3. After: Price _____ Quantity_____ 13 The popularity of the computer games increases in the world markets. At the same time new technology lower production costs. (Double Shift) 1. Draw and Label Equilibrium: 2. The Change: Demand- Left or Right Shifter- Supply- Left or Right Shifter- 3. After: Price _____ Quantity_____