Select two news headlines, one from each column. Demand (TRIBE) Supply (ROTTEN) Select one: "As more Americans hold on to older vehicles longer, oil and tire change service shops see boom in profits." "Influencers claim orange juice cured their insomnia; claim leaves doctors scratching their heads and store cases looking bare." "U.S. birthrate continues to drop, signaling a colicky future for makers of baby products." Select one: "Semiconductor chip shortage woes: automobile manufacturers warn of delays in production and higher prices." "Safer, faster milk for less: dairy leaders describe improved production process." "Social media campaigns increase shelter adoptions; breeders report giving up the puppy business." Draw your graphs. Draw a basic market graph for each headline you chose. You should have two graphs, where each focuses on one product market. Title each graph with the market for the product affected in your news headline, such as "Market for Orange Juice." In each graph, label the axes, curves, equilibrium price "Pe," and equilibrium quantity "Qe." Note: The headlines you chose might reference or imply more than one good or service. However, you will interpret the impact on just one product market for each headline. As long as your graphs are reasonable for your chosen headlines, your work should be acceptable. Add the shift in each graph. Draw a new curve on each of your graphs to reflect the shift in either supply or demand. Label it D1 or S1, accordingly. Label the new equilibrium price P1 and the new equilibrium quantity Q1. Add arrows to show the direction of the changes in the curve, price, and quantity

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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Question

Select two news headlines, one from each column.

Demand (TRIBE)

Supply (ROTTEN)

Select one:

"As more Americans hold on to older vehicles longer, oil and tire change service shops see boom in profits."

"Influencers claim orange juice cured their insomnia; claim leaves doctors scratching their heads and store cases looking bare."

"U.S. birthrate continues to drop, signaling a colicky future for makers of baby products."

Select one:

"Semiconductor chip shortage woes: automobile manufacturers warn of delays in production and higher prices."

"Safer, faster milk for less: dairy leaders describe improved production process."

"Social media campaigns increase shelter adoptions; breeders report giving up the puppy business."

Draw your graphs. Draw a basic market graph for each headline you chose. You should have two graphs, where each focuses on one product market. Title each graph with the market for the product affected in your news headline, such as "Market for Orange Juice." In each graph, label the axes, curves, equilibrium price "Pe," and equilibrium quantity "Qe."

Note: The headlines you chose might reference or imply more than one good or service. However, you will interpret the impact on just one product market for each headline. As long as your graphs are reasonable for your chosen headlines, your work should be acceptable.

Add the shift in each graph. Draw a new curve on each of your graphs to reflect the shift in either supply or demand. Label it D1 or S1, accordingly. Label the new equilibrium price P1 and the new equilibrium quantity Q1. Add arrows to show the direction of the changes in the curve, price, and quantity

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