Economics - Draw the supply and demand curves

Economics Homework

Name _________________________________________________

Draw the supply and demand curves; label price and quantities

Price
20.00
22.00
24.00
26.00
28.00
30.00

Quantity Demanded
395
375
350
320
280
235

3 points

Quantity Supplied
200
250
290
320
345
365

(2 points for questions 1-3)
1

The equilibrium price in this market is

2

An increase in the cost of labor lowers the quantity supplied by 65 bushels at each price.
The new equilibrium price would be

3

If the quantity demanded at each price increases by 130 bushels, then the new equilibrium
quantity will be

Quesion/ In 2000 a cyclone destroyed the vanilla bean crop in Madagascar, the world's leading vanilla producer, and the
replacement vines took 3 to 5 years to produce usable beans. By 2006, the replanted vines in Madagascar
started to produce vanilla beans, but by the time several other countries had also entered the vanilla market.
The price of vanilla beans went from $50 per kilo to $500 perkilo from 2000 to 2003, and from $500 per kilo
to $25 per kilo from 2003 to 2006
11 According to the application from 2000 to 2003, the price of vanilla beans increased because the
_________ curve shifted __________.
(a)
(b)
(c
(d)

demand; up and to the right
demand; down and to the left
supply; down and to the right
supply; up and to the left

12 From 2003 to 2006, the price of vanilla beans decreased
(a)
(b)
(c
(d)

because the______ curves hifted_______

demand; up and to the right
demand; down and to the left
supply; down and to the right
supply; up and to the left

13 From 2000 to 2003 the price of vanilla beans increased __________ percent.
(a)
(b)
(c
(d)

100
450
500
900

14 From 2003 to 2006 the price of vanilla beans decreased ____________
(a)
(b)
(c
(d)

0

25
45
50
95