Economics

Supply and Demand Homework Problem Set

Your Name:________________________________________________ Date:___________

1. Supply and Demand Analysis for:

Paper Maps

Change in the world:

Digital GPS devices and Free Online Mapping Services (such as Google
Maps) are introduced into the market.
A-Which is the most direct effect of this change? Please circle:

Demand

Supply

B-In which direction is the effect? Please circle:

Increase

Decrease

C-As a result, the equilibrium price

(circle):

Increases

Decreases

the equilibrium quantity supplied and demanded (circle):

Increases

Decreases

D-Please draw in the new line and the arrows to indicate the changes in price and quantity
supplied and demanded. Also mark the levels in price and quantity.

Price

Your Explanation:

D
Quantity

2. Supply and Demand Analysis for:

Home Healthcare Workers

Change in the world:

Due to a growing number of older Americans, and their need for
healthcare, many states begin to allow people to become certified home healthcare workers by
completing online degrees.
A-Which is the most direct effect of this change? Please circle:

Demand

Supply

B-In which direction is the effect? Please circle:

Increase

Decrease

C-As a result, the equilibrium price

(circle):

Increases

Decreases

the equilibrium quantity supplied and demanded (circle):

Increases

Decreases

D-Please draw in the new line and the arrows to indicate the changes in price and quantity
supplied and demanded. Also mark the levels in price and quantity.
Price

Your Explanation:

D
Quantity

3. Supply and Demand Analysis for:

Sneakers

Change in the world:

Foreign governments enact and enforce new legislation that requires
bathroom breaks, healthcare, and retirement payments for their workers from manufacturers
such as Nike.
A-Which is the most direct effect of this change? Please circle:
Demand
Supply
B-In which direction is the effect? Please circle:
C-As a result, the equilibrium price

Increase

Decrease

(circle):

Increases

Decreases

the equilibrium quantity supplied and demanded (circle):

Increases

Decreases

D-Please draw in the new line and the arrows to indicate the changes in price and quantity
supplied and demanded. Also mark the levels in price and quantity.
Your Explanation:
Price

D
Quantity

4. Supply and Demand Analysis for:

Home Heating Oil

Change in the world:

Companies find large deposits of natural gas leading to a market price
decrease for natural gas.
A-Which is the most direct effect of this change? Please circle:

Demand

Supply

B-In which direction is the effect? Please circle:

Increase

Decrease

C-As a result, the equilibrium price

(circle):

Increases

Decreases

the equilibrium quantity supplied and demanded (circle):

Increases

Decreases

D-Please draw in the new line and the arrows to indicate the changes in price and quantity
supplied and demanded. Also mark the levels in price and quantity.

Price

D
Quantity

Your Explanation: