1. Draw a diagram of a surplus. Be sure to LABEL the quantity demanded, quantity supplied, and the surplus or shortage. (Hint: your diagram should look like the one on slide 36 of the PPT presentation)

**Please draw your own diagram (don’t copy and paste one from the internet).

2. Draw a diagram of a shortage. Be sure to LABEL the quantity demanded, quantity supplied, and the surplus or shortage.

3. In your own words, briefly explain (one sentence) what an inferior good is and provide an obvious example.

4. In your own words, briefly explain (one sentence) what a normal good is and provide an obvious example

5. Use a supply and demand diagram to show what will happen in the market for puppy food as spring arrives and more puppies are born.

Please draw the graph by hand (do not copy and paste) and upload a picture to this question.

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Be sure to label:

price axis, quantity axis

demand curve, supply curve

original equilibrium point (q1 and p1)

new supply OR demand curve

new equilibrium point (q2 and p2)

arrows on the axes showing what happened to the quantity and price

*Please graph the FIRST thing that will happen in the market – only shift one curve.

Your graphs should look similar to the graph below but show what is happening in the scenario.

6. Use a supply and demand diagram to show what will happen in the market for sunscreen if an ingredient used to make sunscreen is banned by the FDA.

Please draw the graph by hand (do not copy and paste) and upload a picture to this question.

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Be sure to label:

price axis, quantity axis

demand curve, supply curve

original equilibrium point (q1 and p1)

new supply OR demand curve

new equilibrium point (q2 and p2)

arrows on the axes showing what happened to the quantity and price

*Please graph the FIRST thing that will happen in the market – only shift one curve.

Your graphs should look similar to the graph below but show what is happening in the scenario.

7. Use a supply and demand diagram to show what will happen in the market for peanuts if more people develop nut allergies.

Please draw the graph by hand (do not copy and paste) and upload a picture to this question.

*****************************************************************************

Be sure to label:

price axis, quantity axis

demand curve, supply curve

original equilibrium point (q1 and p1)

new supply OR demand curve

new equilibrium point (q2 and p2)

arrows on the axes showing what happened to the quantity and price

*Please graph the FIRST thing that will happen in the market – only shift one curve.

Your graphs should look similar to the graph below but show what is happening in the scenario.

8.  Use a supply and demand diagram to show what will happen in the market for cotton if the government begins to subsidize cotton farmers (gives them money).

Please draw the graph by hand (do not copy and paste) and upload a picture to this question.

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Be sure to label:

price axis, quantity axis

demand curve, supply curve

original equilibrium point (q1 and p1)

new supply OR demand curve

new equilibrium point (q2 and p2)

arrows on the axes showing what happened to the quantity and price

*Please graph the FIRST thing that will happen in the market – only shift one curve.

Your graphs should look similar to the graph below but show what is happening in the scenario.

9. Use a supply and demand diagram to show what will happen in the market for dark chocolate if consumer’s incomes increase and dark chocolate is a normal good.

Please draw the graph by hand (do not copy and paste) and upload a picture to this question.

****************************************************************************

Be sure to label:

price axis, quantity axis

demand curve, supply curve

original equilibrium point (q1 and p1)

new supply OR demand curve

new equilibrium point (q2 and p2)

arrows on the axes showing what happened to the quantity and price

*Please graph the FIRST thing that will happen in the market – only shift one curve.

Your graphs should look similar to the graph below but show what is happening in the scenario.

10. Use a supply and demand diagram to show what will happen in the market for almond milk if the price of almonds increases.

Please draw the graph by hand (do not copy and paste) and upload a picture to this question.

******************************************************************************

Be sure to label:

price axis, quantity axis

demand curve, supply curve

original equilibrium point (q1 and p1)

new supply OR demand curve

new equilibrium point (q2 and p2)

arrows on the axes showing what happened to the quantity and price

*Please graph the FIRST thing that will happen in the market – only shift one curve.