Question: Use arrows to describe an increase or decrease in equilibrium quantity ( Q e ) and equilibrium price ( P e ) in the middle
Use arrows to describe an increase or decrease in equilibrium quantity and equilibrium price in the middle columns given the "events" described for the following markets. If the resulting impact on price or quantity cannot be determined, use a question mark in place of arrows. In the last column, describe whether the event affects the supplyside, the demandside of the market or both sides of the market.
Market Event
A Oranges
Event
An unexpected bumper crop Increases the orange yield:
B Pencils
The price of wood is decreased and pencils become wildly popular:
Qe SupplyDemand Side Supply Increas
both
and an improvement in car production technology:
D Coffee
E Restaurant The government mandates a
Meals
Coffee sellers develop a new product and consumers love it:
increase in the minimum wage:
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