Assignment: Market Headlines and Equilibrium
Economics
Name: ____________
Hr: ____
In this activity, you will analyze a series of newspaper headlines. Based on information in
each headline, you will investigate what happens to the equilibrium in the market.
Follow these steps:
1. Carefully read the headlines. Determine whether the information will
Shift the supply curve right or left, shift the demand curve right or left.
1. Explain what happened to the supply or demand curve and why.
2. What was the shifter? (INEPT) (WIGNET)
3. What happened to the equilibrium price?
4. What happened to the equilibrium quantity?
1
Assignment: Market Headlines and Equilibrium
Name: ____________
Economics
Hr: ____
Effect of headlines on the Athletic Shoe Market
Headline
1. Price of Rubber
increases
dramatically.
Which graph
represents this
change?
(A, B, C, or D?)
Shifter
EQ- price
EQ-Quantity
Supply decreases (C)
Input cost increase
increases
Decreases
2. Movie Increases
Popularity of
Athletic shoes
3. Price of Sport
Sandals Drops
Drastically
4. Two new athletic
shoe companies
enter the marketproduction begins
today
5. Consumers
worry price of
athletic shoes may
increase next
month
6. Government sets
price ceiling below
equilibrium price to
help consumers
save money
2
Assignment: Market Headlines and Equilibrium
Name: ____________
Economics
Hr: ____
Effect of Headlines on Various Markets (INEPT / WIGNET)
Headline
1. Insects kill half
the world’s tomato
crop. (tomato
market)
Which graph
represents this
change?
(A, B, C, or D?)
Shifter
EQ- price
EQ-Quantity
Supply decreases (C)
Natural disaster
increases
Decreases
2. Recession hitsMany consumers
lose jobs (Movie
ticket sales market)
3. Price of
computer chips
tumbles (computer
market)
4. Price of Salmon
skyrockets (Sea
bass market)
5. Government
places excise tax
on cigarettes to
discourage
smoking(Cigarette
market)
6. Price of DVD
players decreases
(DVD market)
7. New, More
efficient assembly
line technology
introduced.
(Automobile
market)
3