
Earth day digital escape room answer key kesler science
Hero Images/Getty Images The Earth Day word search puzzles below have 15 or fewer hidden words to find. This is great for shorter or longer class periods. Download & print the secret code puzzle here: New Years Crack the Code Puzzle. Our goal is to provide you with resources whether you are on campus, % virtual, or some hybrid model that includes both. Answers are provided in two ways ( by level and by clue ), the game is sometimes shuffling the appearance of the stage between players, so if your level will not match with mine, you can find it in the list of clues : Welcome to the Breakout EDU Digital Sandbox. Natural resources like air, water, wood, forest, oil, natural gas, coal, metals etc are nature’s gift to humanity. The problems on this worksheet require students to regroup minutes. See trending images, wallpapers, gifs and ideas on Bing everyday. 5 mi) in depth and is the outermost layer. Listen to the following two passages and answer the 3 questions that follow each: Its Getting Chilly: The Cold War & Key Players and Events in the Cold War. Go to Week Learn More. Saved by Sarah's STEM Stuff. Jacob; Burkhardt, Andrew; Firebaugh, Ariel It’s possible that I shall make an ass of myself. We’ve been updating the Kesler Science resources all spring and into this summer to help you through these uncertain times. Perfect for NGSS, STEM, and state standards. Translate From English Into Indonesian. Other Buyers Have Said: "Wow! Science Non-invasive skin swab tests can quickly detect COVID study PTI The samples were collected by gently swabbing a skin area rich in sebum such as the face, neck or back For more than years we’ve supported educators to inspire generations of pupils. To help you to enthuse your learners, we've picked a Earth Day Digital Breakout. We spent the morning carrying out experiments relating to sound, the human body and forces. Here are a few photos from the Scientific Method Resource. Space. Pull out your best green attire and get ready to party your shamrocks off. 19 . Beginning on Valentine’s Day, , when twelve-year-old Todd Domboski plunged through the earth in his grandmother’s backyard in Centralia, Pennsylvania, The Day the Earth Caved In is an unprecedented and riveting account of the nation’s worst mine fire. Students use printed materials provided by the teacher, digital files, and resources hidden and/or displayed around the room to solve the puzzles. 2. Click to learn more about Think Tank! Nov 06, · Escape Room Mystery Words Answers All levels (UPDATED) Escape Room mystery words complete solutions answers and walkthrough in one Single page. For example, the moon always shows us the same face. Educação nos paises ricos. In this science worksheet, students participate in an Earth Day activity by completing a crossword puzzle. Nov 6, - Get your students excited about review with this low prep escape room activity! Can your students beat the clock and escape in time?!? This activity includes an engaging scenario and 4 easy to prep review puzzles. Revisions}}} All three h2 headings cannot be distinguished. Free mental maths worksheets contains the maths questions for class 4 students. . Another idea would be to use a lock with a key and have one of your clues give a hint about where the key is hidden. The clues usually pertain to the topic of the room, but sometimes they're presented as math problems, word puzzles or This one isn't a math pennant, but I thought I'd link it here anyway. 1. Click to learn more about Think Tank! TEACH IN n. They like to choose something different every time. Finally, students will create a display for Earth Day about how the earth is important and how they can better care for it. Looking for a digital only v 3. 0,,Add the Reload feature in OMEdit,OMEdit,1. Every day it traps as much extra heat as would be released by , Hiroshima-class atomic bombs exploding in the Earth’s atmosphere [crosstalk ]. Where we vicariously explore the cosmos with astronauts, astrophysicists and enthusiasts. 7k. Arts and Entertainment Reference, Education and News Scroll down or click for work sheet text and answer key. ***STUDENT GOOGLE ACCOUNTS REQUIRED FOR USE*** It is your responsibility to ensure the links will work prior to your purchase. The atmosphere of Earth is the layer of gases, commonly known as air, retained by Earth's gravity, surrounding the planet Earth and forming its planetary atmosphere. stellar days in one BrainPOP - Animated Educational Site for Kids - Science, Social Studies, English, Math, Arts & Music, Health, and Technology Create an Earth Day-themed jeopardy game with these facts about the Earth. Earth Science Escape Room. 04/22/ The Earth Escape Room has students walking around the classroom breaking codes. Scroll below to find all the answers. Teachers love word ladders, so we thought the librarians might get a kick out of them, too! Change a single letter on each line of the word ladder to create additional words that will eventually turn the first word into the last word. Fast forward to today and our innovative digital tools and services are helping school leaders, like you, in schools all across the world. You have to focus on hint to find the correct word and jump to next level, the game is really addictive with nice design and cool music, so we understand why he Earth Day is April 22 every year, but you can take action any day! Visit the Earth Day Action Hub to learn more and make a difference. Simply create a login A Unique Escape Room Experience: Unlike many escape rooms, the teacher is in total control on which of the 8 puzzles they want to use and in which order to use them. The Earth Day Escape Room has students walking around the classroom breaking codes. The Earth Day Escape Room will take students on a secret mission around the classroom! This escape room has students decode fun and interesting facts about Earth Day. Triveni institute of dental science bilaspur. Here you can find suggested Earth science related activities. Every Earth Day, Madison and Carter think of something to do for their community. This covers the concepts: Earth's Interior, Continental Drift, Plate Boundaries, and Plate Tectonics. LiveScience is where the curious come to find answers. This one is perfect to do on Earth Day, April 22nd. Crime Scene: A large wooden box was built with one door. com/Store/Kesler-ScienceInnovative activities and lesson ideas to prompt thoughtful discussion about Earth Day Taking place on 22 April every year, Earth Day is a worldwide movement that offers an ideal opportunity to get students thinking about their environmental footprint both in and outside of the classroom and this year the theme is 'protect our species'. It allows them to learn about Earth Day concepts, such as recycling, reducing, reusing, and composting, in a fun and engaging way. More science escape room products are being released. 3 days both to rotate on its axis and to orbit Earth Jun 27, · Ways To Save Natural Resources. Science Escape Room Bundle. Oct 28, · 40+ FREE digital escape rooms (plus a step by step guide for creating your own) Gamification Digital escape rooms bring the excitement of hunting for clues and the joy of solving puzzles right to your student’s devices. Look here to find out how they help. " Suddenly, the box beeps and the timer begins. There needs to be a narrative that ties in with the theme of the room, it needs to include content from your classroom, and it needs to include a type of puzzle to unlock the clue or code. (examples: Of all the books you've read this year, which one was your favorite? What was your favorite subject in school this year, and why? Who did you sit with in the lunch room this school year, and why did you enjoy being with them?) Premier natural history and science Museum in Denver, Colorado and the western United States. I turned it into a Super Mario Brothers’ themed game where each lock represented defeating a villain from the old original Super Mario Brothers game (because I Over the 24 hours of Earth Day, the 50th anniversary of Earth Day filled the digital landscape with global conversations, calls to action, performances, video teach-ins and more. S. ; Word search with pictures: There are just seven words to find in this easy word search puzzle with an included answer sheet. a series of lectures and discussions on a subject of public interest focused on taking action In , during an era of civic action and public demonstrations, concerned citizens from all walks of life deployed environmental teach-ins at the first Earth Day. In the 'settings', a Google Forms can allow "edit after submit". Students are given a secret code name and sent Scientific Method& Experiment Recording Sheets These Earth Day science experiments are also a great opportunity to work in a little bit about the Scientific Method and Science Experiments. Bring It All Together – The key to any engaging escape room puzzle is that it needs to include 3 things. These easy puzzles are great for kids in grades 1 to 3. Click on the link to the Earth Day activity and share it with your students and colleagues. Dec 17, · Math riddles and number puzzles that challenge your lateral thinking. Lightning and surge protection of large ground facilities. Categorize characters based on their character traits, Classify and categorize information into an outline form, and more. At your feet, there is a map of the planet and a large box with four digital inputs. Psst…If you want a little help solving the secret code, print out the answer key below. Students unscramble the words and complete the crossword puzzle. In the afternoon, we took part in a workshop called Circuit City which was all about the first scientist to bring electricity to NASA. Moon phases and the moon's orbit are mysteries to many. Earth Day Digital Breakout. Yahoo Answers is a great knowledge-sharing platform where M+ topics are discussed. ). , Congressional Sales Office, United States Department of Energy Appropriations and expenditures, Particles Nuclear physics Research United States, Particle accelerators United States, Nuclear physics Research United States armfc Growth mindset research paper. Click for our archive of Every-Day Edit activities from previous weeks. Post a series of tasks or questions on chart paper around the room. This Breakout game is so much FUN! The whole class participates in a challenge to find the code and unlock theOver the 24 hours of Earth Day, the 50th anniversary of Earth Day filled the digital landscape with global conversations, calls to action, performances, video teach-ins and more. Search or browse the existing Google Answers index by using the search box above or the category links below. NASA has a portfolio of programs and opportunities dedicated to attracting, engaging and educating students and to support educators and educational institutions across the nation. com/Jake’s video about The Curiosity Box: Mar 25, · Major Earth Satellite to Track Disasters, Effects of Climate Change. Pollution Informational Article. Student should have knowledge Included in Every Escape Room Challenge The escape room challenges are comprehensive resources that provide the teacher the confidence to run a smooth and efficient lesson. The thin parts are the oceanic crust, which underlie the ocean basins (5–10 km) and are composed of dense () iron magnesium silicate igneous rocks, like basalt. on NASA’s blog. thecuriositybox. W e call Earth our mother as it has provided us with all the things that are essential for survival. Answers is the place to go to get the answers you need and to ask the questions you want Moon phases and the moon's orbit are mysteries to many. Suitable for all grades, differentiating for instruction, kids love to be able to exchange and solve each others word searches. Morgan's Page. Create a buzz! Get your students pumped for this new experience. It’s here! Science stuff, mind-blowing stuff, Vsauce stuff, oh my!! THE CURIOSITY BOX: https://www. O. This year they want to help the birds. Everyone learns or shares information via question-and-answer. Action and Adventure The Earth's crust ranges from 5–70 kilometres (3. 15 Finally, students will create a display for Earth Day about how the earth is important and how they can better care for it. ",[emailprotected]… 1. Instructions The Digital Citizen BreakoutEDU is a digital game based on the Breakout EDU idea. We share the latest discoveries in science, explore new St Patrick’s Day is no exception! The famous holiday, celebrated annually on March 17th, is typically a day of merriment, dancing, feasting, and drinking. Students read each clue. Mar 14, · In a classroom escape room students use themed clues to reveal secret lock combinations. Get the obvious answers to math riddles. Digital citizen breakout edu instructions and answer key 1. While Earth Day went digital, our goal remained the same: to mobilize the world to take the most meaningful actions to make a difference. Earth & Space Science Resources Learning about weather, erosion, cloud types, and even the outer reaches of our solar system is possible from inside the classroom thanks to Education. What has alr This escape room has students decode interesting facts about Earth’s location, size, planet type, atmosphere, layers of the Earth, rotation, continents and oceans. As we prepare to mark 50 years of Earth Day in , let’s take a look at the last half-century of mobilization for action: Mar 28, - Energy Efficient Home Upgrades in Los Angeles For {manytext_bing} Down -- Home Improvement Hub -- Via - to create a foldable on renewable and nonrenewable resources Oct 25, · Escape Room Answers and Cheats[ % Updated ] Escape Room is a wonderful word search and room escape challenging game, the concept combine two addictive categories : escape and puzzle. Show students how scientists work through a process that asks a question and searches for an answer to that question. This Breakout game is so much FUN! The whole class participates in a challenge to find the code and unlock the Oct 04, · For this digital escape room, I created five separate tasks that target literary devices and close reading skills in order to derive the passwords needed to unlock each digital lock. Engaging Social Studies and Science Escape Rooms for the upper elementary or middle school classroom. Earth Day challenge: There are a whopping 64 words to find in this free, printable Earth Day word search. Participate in a Classroom Service Activity An engaging way to get students involved in Earth Day is by having them participate in a class-wide service project. Rather, it is a great amount of matter packed into a very small area - think of a star ten times more massive than the Sun squeezed into a sphere approximately the diameter of New York City. The coupling between the solar wind and the magnetosphere is mediated and controlled by the magnetic field in the solar wind through the process of Digital flood-inundation maps for a 9-mile (mi) reach of the Mississinewa River from 0. Digital answer key (Google Form) that is great for or Google Classrooms. Year 4 had an amazing day at the Manchester Museum of Science and Industry. Answer Key. Digital Etiquette Dinosaurs Distance Learning Distance, Rate, and Time Distributive Property Dividing Decimals Division Diwali Dogs Dolly the Sheep Dolphins Drama Drawing Dreams Droughts Duchenne Muscular Dystrophy Dyslexia Earth Earth's Atmosphere Earth's Structure Mar 28, - Energy Efficient Home Upgrades in Los Angeles For {manytext_bing} Down -- Home Improvement Hub -- Via - to create a foldable on renewable and nonrenewable resources Nov 13, - Eclipse Lesson - Solar and Lunar - This lesson package includes the lesson (student and teacher versions of the presentation), an auto-graded Exit Ticket to check student understanding, a comprehension reading, a lab station activity, a video worksheet, an eclipse online simulation with questions, a Oct 20, · How Science Figured Out the Age of Earth. Feb 7, - The Earth Day Escape Room will take students on a secret mission around the classroom! This escape room has students decode interesting facts about Earth Day, global warming and the environment. Other Buyers Have Said: "Wow! My version of the Earth Day Challenge (Electronic option only) I modified the basic one above to to create a new choice board (with hyperlinks built in) to include many of the online activities we have used in class - Quizlet, GimKit, Legends, and online tools (Poster My Wall, FlipGrid, video creators, etc. (example: 1 hours 80 minutes = 2 hours 20 minutes) The First Earth Day. Quizlet makes simple learning tools that let you study anything. Variations in the solar wind can lead to disruptions of space- and ground-based systems caused by enhanced currents flowing into the ionosphere and increased radiation in the near-Earth environment. Editor's Summary Oct 25, · Escape Room Answers and Cheats[ % Updated ] Escape Room is a wonderful word search and room escape challenging game, the concept combine two addictive categories : escape and puzzle. This resource also comes with ideas on how to best organize the game. The door was locked from the inside, and then nailed shut from the inside. Each puzzle is independent of the others. This one isn't a math pennant, but I thought I'd link it here anyway. I turned it into a Super Mario Brothers' themed game where each lock represented defeating a villain from the old original Super Mario Brothers game (because I Explain to your class that they will find the answer to each question at the link provided, but they will need to read carefully. This is beneficial for the kids. Happy Earth Day; Happy Earth Day. A remake of the classic science fiction film about an alien visitor and his giant robot counterpart who visit Earth. When it is daytime in the USA, what time of day is it on the other side of the world? Why? Name _____ Date_____ Rotation of the Earth – Answer Key 1. NASA Astrophysics Data System (ADS) Stringfellow, Michael F. Science 26 Mar T cells that use a γµ T cell receptor define a third lineage found exclusively in the gray short-tailed opossum and other non-eutherian mammals. In astonishing detail, award-winning journalist Joan Quigley, the granddaughter of Oct 11, · Riddles are an easy answer if you ever get stuck making an escape room. Science Room Science Curriculum Science Classroom Teaching Science Science Education Science Activities Life Science Science Ideas Science Fair. Earth Day scavenger hunt answer key: The Earth Day Network hopes to plant 7. Now includes both digital and paper based versions of the activity. Teacher directions and detailed answer key, student answer document, and an optional digital answer key for classes which have access to the internet. What has alr Explain to your class that they will find the answer to each question at the link provided, but they will need to read carefully. Museum of Science and Industry - We've put together an extensive list of links and materials to provide kids and their caregivers with plenty to do. Mar 11, · In an Escape Room Activity, students work together to solve clues and puzzles, moving from activity to activity in search of answers until they figure out all the clues and solve the challenge. P. (Included is also a display labeled "Earth Care" in case you are doing this pollution exploration when it is not Earth Day. TeacherVision's Morning Announcements blog is a teacher's go-to resource for the latest teaching trends, tips, ideas and inspiration. Your customizable and curated collection of the best in trusted news plus coverage of sports, entertainment, money, weather, travel, health and lifestyle, combined with Outlook/Hotmail, Facebook The purpose of NASA STEM is to engage students in NASA’s mission. Answers are provided in two ways ( by level and by clue ), the game is sometimes shuffling the appearance of the stage between players, so if your level will not match with mine, you can find it in the list of clues : The place for children of all ages to play games and discover new jokes, surveys, answers to science questions, and fun crafts and recipes from Highlights. Each member of the group will go to the website listed on task card #1 Earth's mantle, Earth's oceans, and Earth's atmosphere contain convection currents. We illuminate our fascinating world, and make your everyday more interesting. In , the physicist William Thomson, 1st Baron Kelvin published calculations that fixed the age of Earth at between 20 million and million years. Go to Mrs. Our vision is to immerse students in NASA’s work, enhance STEM literacy, and inspire the next generation to explore. teacherspayteachers. The student would have to submit the form, then click the button to see the form, copy the URL, and email that URL to themselves to open later and finish the form (very cumbersome!). gov brings you the latest news, images and videos from America's space agency, pioneering the future in space exploration, scientific discovery and aeronautics research. One of our Super Villains have locked them inside of the classroom, but has placed clues within the classroom so that they may escape. Search this site. 40+ FREE digital escape rooms (plus a step by step guide for creating your own) Gamification Digital escape rooms bring the excitement of hunting for clues and the joy of solving puzzles right to your student's devices. The most innovative ever escape game with puzzle experience, You must not miss The Escape Classroom Students compete against other teams in order to escape the classroom before the clock ticks down to zero. NASA Astrophysics Data System (ADS) Bittle, Lauren E. The words run forward, backward, diagonally, up, and down. We'll look at Earth, Habitats, Space, Chemical Reactions, Engineering, and Science World is fully booked today! To guarantee your timed-ticketed entry for another day, please book your visit in advance. Students can discuss these and add some others. POLLINATION 2. Saturday, April 10, • – a. Click for Ideas for Using Every-Day Edit in the classroom. 0,enhancement,adeas31,new,T+,T+,"When working with OpenModelica and other tools (including a text editor) it often happens that modifications to a work-in-progress library are done outside OMEdit. Activity Key Uncorrected Text Betsy Ross was born on January 1 RECYCLING 3. Rallies took place across the country and, by the end of the year, the U. D: The Earth Day escape room is an immersive experience for your students during Earth Day. m. 18,, 4. PT My version of the Earth Day Challenge (Electronic option only) I modified the basic one above to to create a new choice board (with hyperlinks built in) to include many of the online activities we have used in class - Quizlet, GimKit, Legends, and online tools (Poster My Wall, FlipGrid, video creators, etc. Make signs that say something like, “The escape room is coming. AWESOME BONUS Recommendation for Kids (and Adults!): Not a digital escape room, but I highly recommend going through the Imagineering in a Box course on Khan Academy. Science: Login to Clever. Earth Science Interactive Notebook Pages include 4 blank pie chart worksheets to graph the abundant elements in Earth’s atmosphere, living matter, oceans, and Earth’s crust. We hope that this digital breakout engages your students on April 22 and inspires you to create more breakouts. The Earth Day escape room is an immersive experience for your middle school students. com’s worksheets. The Earth Day Digital Escape Room will take students on a secret mission through two ° VIEW rooms! This escape room has students decode interesting facts about Earth Day, recycling and the environment. Watch videos and full episodes of your favorite PBS KIDS shows like Curious George, Dinosaur Train and Sesame Street! Jan 24, · An extension on this type of exit ticket might be pulling all the students who sorted themselves in “Not Quite” and “Not at All” into a small group for review the next day. Graffiti Wall. They've learned about recycling, solar power, and planting gardens. Educational games and videos from Curious George, Wild Kratts and other PBS KIDS shows! Learn how technology can make life richer and less wasteful through practical applications. Scholastic's SuperScience magazine captures the excitement of science in your classroom with science news and blended-learning resources. 8 billion in the next five years. You’ll check the answer, and if they are correct, you can stamp (or sticker) their box. ; Borish, H. But in that case one can always get out of it with a little dialectic. Apr 18, - This free resource is a worksheet with answer key made to accompany a virtual lab set up by Glencoe, linked in the activity. Geological Survey (USGS) in cooperation with the Indiana Office of Community and Rural Affairs. 3. These are community-created games. diy pallet bar cart Featuring light grey walls and a stunning fireplace topped with candles and an antique Fans got a peek inside Kim and Andy's open plan kitchen and dining room their white glossy cabinets with dark wooden surround, breakfast bar with fruit Welcome to Videojug! Here you'll find the best how-to videos around, from delicious, easy-to-follow recipes to beauty and fashion tips. Research proposal on brand loyalty. Digital Citizen BreakoutEDU 2. Create beautiful school newsletters, updates, and announcements. Dark Skies, Bright Kids Year 7. For this digital escape room, I created five separate tasks that target literary devices and close reading skills in order to derive the passwords needed to unlock each digital lock. We share the latest discoveries in science, explore new Dec 18, - BoomLearning. Science World is fully booked today! To guarantee your timed-ticketed entry for another day, please book your visit in advance. … These task cards have group discussion questions. Al Gore: Apr 22, · In , Earth Day falls during a time when much of the coronavirus-stricken world is staying at home. Life orientation assignment grade 12 memo. You have to focus on hint to find the correct word and jump to next level, the game is really addictive with nice design and cool music, so we understand why he Escape Room Mystery Word Answers. General Science Puzzles For more lesson ideas, visit the General Science Lesson Plan page of the Science Classroom. What is the shape of the Earth? Provide an example of this shape. Earth Day Compare and Contrast Earth Day Critical Thinking Earth Day Crossword Earth Day Dot to Dots Earth Day for Kids Earth Day Glyphs: Earth Day Hidden Picture Puzzles Earth Day History Earth Day Lesson Plans Earth Day Literature Book Units Earth Day Math Earth Day Maze Earth Day Play Earth Day Puzzles Earth Day Science Project Earth Day Nov 20, · Here’s how to make your own escape room challenge for kids: Buy a Lock. In the middle of the room there is a dead man hanging from the ceiling, his feet are 3 feet off the ground. In , Rachel Carson's book Silent Spring was published. Exhibitions, IMAX and planetarium, and lectures that explore the wonders of science, Colorado, Earth, and the universe. com/Product/Science-Escape-Room-Growing-Bundle This science escape room is for middle school stu Editing Science Escape Digital Locks from Kesler Sciencehttps://www. Find the latest science news articles, photos and videos covering space, the environment, human development and more on NBCNews. The vulnerability of large ground facilities to direct lightning strikes and to lightning-induced overvoltages on the power distribution, telephone and data communication lines are discussed. The Scientific Method Posters and Science Experiment Recording Sheets are a great addition to the 20 Earth Day Science Experiments. Click on Newsela and read the article Earth Day. Above is Puzzle #2 of a Pi Day digital math escape room where students answer questions to crack the codes of 5 puzzles. This resource hasn't been reviewed yet. Happy Earth Day. Tes paid licenceHow can I reuse this? Reviews. government had created the Environmental Protection Agency. Come up with two other specific examples ofEscape Room Bundle - https://www. Top 10 Notes on Monsanto and G. Mar 29, · Earth Day Digital Breakout. When you shake the box, it says, "Open me with four codes for a trip back to earth. You can always make them harder by putting it in code! These secret codes are a great way to spice up an escape room. You can purchase the Newton's Laws Escape Room here. ♦ Student Recording Sheet and Teacher Answer Key ♦ Large Sized Cards and Smaller ♦ Link to an optional, but recommended, digital breakout room. Why it started and what is it about? This Escape Room features movement and giving the students ideas about how they can help the environment. com celebrates humanity's ongoing expansion across the final frontier. Oct 23, - Provide your students with review and reinforcement over Energy Transfer with this CONDUCTION, CONVECTION & RADIATION WORKSHEET! Need a digital option? No problem! I have included both a print & digital version of this worksheet, making it perfect for distance learning, flipped classrooms an Mar 21, · Once the group thinks they have solved the task correctly, they write the answer in a square and raise their hands. This one is more for students who are comfortable with the circle, sphere and cylinder formulas and solving for specific variables within the formulas
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Learning Objectives
- Explain, calculate, and illustrate consumer surplus
- Explain, calculate, and illustrate producer surplus
- Explain, calculate, and illustrate social surplus
Demand, Supply and Efficiency
The familiar demand and supply diagram holds within it the concept of allocative efficiency. One typical way that economists define efficiency is when it is impossible to improve the situation of one party without imposing a cost on another. Conversely, if a situation is inefficient, it becomes possible to benefit at least one party without imposing costs on others.
Efficiency in the demand and supply model has the same basic meaning: the economy is getting as much benefit as possible from its scarce resources and all the possible gains from trade have been achieved. In other words, the optimal amount of each good and service is being produced and consumed.
Consumer Surplus, Producer Surplus, Social Surplus
Consider a market for tablet computers, as shown in Figure 1. We usually think of demand curves as showing what quantity of some product consumers will buy at any price, but a demand curve can also be read the other way. If we choose a quantity of output, the demand curve shows the maximum price consumers would be willing to pay for that quantity. According to the demand curve in Figure 1, if producers wanted to sell a quantity of 20 million tablets, some customers are willing to pay $90 each (see point J.) In other words, a tablet is worth $90 to those customers.
Figure 1.Consumer and Producer Surplus. The somewhat triangular area labeled by F in the graph shows the area of consumer surplus, which shows that the equilibrium price in the market was less than what many of the consumers were willing to pay. The somewhat triangular area labeled by G shows the area of producer surplus, which shows that the equilibrium price received in the market was more than what many of the producers were willing to accept for their products.
However, that doesn’t mean that those customers will end up paying $ Figure 1 shows that the equilibrium price is $80 and the equilibrium quantity is 28 million tablets. At that price, each customer who would have been willing to pay $90 for a tablet is getting a good deal. We all know what a good deal is—it’s when you get something for less than you think it’s worth. We don’t have to stop there. If suppliers chose to produce only 14 tables (as shown in point K), we can look at Figure 1 and up to the demand curve to see that some customers would have been willing to pay about $ for a tablet at this quantity produced. What that means is that this subset of customers got an even better deal at the equilibrium price.
The demand curve shows what consumers are willing to pay for any given quantity of tablets. In other words, the height of the demand curve at any quantity shows what some consumers think those tablets are worth. We can formalize this idea of how good a deal consumers get on a transaction using the concept of consumer surplus.
Since a demand curve traces consumers’ willingness to pay for different quantities, we can define the gain to consumers as the difference between what they would have been willing to pay and the price that they actually paid. At point J, consumers were willing to pay $90, but they were able to purchase tablets at the equilibrium price of $80, so they gained $10 of extra value on each tablet. This is exactly analogous to the “profit” Bill earned from buying apples that we described in the previous page of reading. If we add up the gains at every quantity, we can measure the consumer surplus as the area under the demand curve up to the equilibrium quantity and above the equilibrium price. In Figure 1, the consumer surplus is the area labeled F.
The supply curve shows the quantity that firms are willing to supply at each price. For example, point K in Figure 1 illustrates that firms would have been willing to supply a quantity of 14 million tablets at a price of $45 each. Those producers were instead able to charge the equilibrium price of $80, clearly receiving an extra benefit beyond what they required to supply the product. The amount that a seller is paid for a good minus the sellers actual cost is called producer surplus. In Figure 1, producer surplus is the area labeled G—that is, the area between the market price and the segment of the supply curve below the equilibrium.
To summarize, producers created and sold 28 tablets to consumers. Both producers and consumers benefited. The value of the tablets is the area under the demand curve up to the equilibrium quantity. The cost to produce that value is the area under the supply curve. The new value created by the transactions, i.e. the net gain to society, is the area between the supply curve and the demand curve, that is, the sum of producer surplus and consumer surplus. This sum is called social surplus, also referred to as economic surplus or total surplus. In Figure 1 we show social surplus as the area F + G. Social surplus is larger at the equilibrium quantity and price than it would be at any other quantity. This is what economists mean when they say that market equilibrium is (perfectly) allocatively efficient. At the efficient level of output, it is impossible to produce greater consumer surplus without reducing producer surplus, and it is impossible to produce greater producer surplus without reducing consumer surplus. In other words, the consumer and producers gains from exchange are maximized at the equilibrium point.
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Watch It
In this video, youll consider the holiday market for Santa hats. The market is efficient and both consumer and producer surplus are maximized at the equilibrium point of $5.
If the government establishes a price ceiling, a shortage results, which also causes the producer surplus to shrink, and results in inefficiency called deadweight loss.
If government implements a price floor, there is a surplus in the market, the consumer surplus shrinks, and inefficiency produces deadweight loss.
You can view the transcript for Consumer and Producer Surplus- Micro Topic (Holiday Edition) here (opens in new window).
Example: Calculate consumer surplus

Figure 2. Consumer and producer surpluses are shown as the area where consumers would have been willing to pay a higher price for a good or the price where producers would have been willing to sell a good.
In the sample market shown in the graph, equilibrium price is $10 and equilibrium quantity is 3 units. The consumer surplus area is highlighted above the equilibrium price line. This area can be calculated as the area of a triangle.
Recall that to find the area of a triangle, you will need to know its base and height. Refer to the following example if you need a refresher.

Figure 3. The area of a triangle.
Lets apply the calculation for the area of a triangle to our example market to see the added value that consumers will get for this item at the equilibrium price in our sample market.
Step 1: Define the base and height of the consumer surplus triangle.
The base of the consumer surplus triangle is 3 units long. Be careful when you define the height of this triangle, it is tempting to say it is 25, can you see why it isnt? The height is determined by the distance from the equilibrium price line and where the demand curve intersects the vertical axis. The height of the triangle begins at $10 and ends at $25, so it will be $25 $10 = $15
[latex] b = 3[/latex]
[latex] h = 15[/latex]
Step 2: Apply the values for base and height to the formula for the area of a triangle.
A = [latex]\frac{1}{2}b\times h[/latex]
A = [latex]\frac{1}{2}3\times 15[/latex]
A = [latex]\frac{1}{2}45[/latex]
A = [latex]\frac{45}{2} = [/latex]
Try It
Try It
This next question allow you to get as much practice as you need, as you can click the link at the top of the question (“Try another version of this question”) to get a new version of the question. Practice until you feel comfortable with this concept.
Glossary
- deadweight loss:
- the loss in social surplus that occurs when a market produces an inefficient quantity
- producer surplus:
- the value to producers of their sales above their cost of production
- social (or economic or total) surplus:
- the sum of consumer and producer surplus at some quantity and price of output
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Shifts in Demand and Supply for Goods and Services
Chapter 3. Demand and Supply
Learning Objectives
By the end of this section, you will be able to:
- Identify factors that affect demand
- Graph demand curves and demand shifts
- Identify factors that affect supply
- Graph supply curves and supply shifts
The previous module explored how price affects the quantity demanded and the quantity supplied. The result was the demand curve and the supply curve. Price, however, is not the only thing that influences demand. Nor is it the only thing that influences supply. For example, how is demand for vegetarian food affected if, say, health concerns cause more consumers to avoid eating meat? Or how is the supply of diamonds affected if diamond producers discover several new diamond mines? What are the major factors, in addition to the price, that influence demand or supply?
Visit this website to read a brief note on how marketing strategies can influence supply and demand of products.
We defined demand as the amount of some product a consumer is willing and able to purchase at each price. That suggests at least two factors in addition to price that affect demand. Willingness to purchase suggests a desire, based on what economists call tastes and preferences. If you neither need nor want something, you will not buy it. Ability to purchase suggests that income is important. Professors are usually able to afford better housing and transportation than students, because they have more income. Prices of related goods can affect demand also. If you need a new car, the price of a Honda may affect your demand for a Ford. Finally, the size or composition of the population can affect demand. The more children a family has, the greater their demand for clothing. The more driving-age children a family has, the greater their demand for car insurance, and the less for diapers and baby formula.
These factors matter both for demand by an individual and demand by the market as a whole. Exactly how do these various factors affect demand, and how do we show the effects graphically? To answer those questions, we need the ceteris paribus assumption.
A demand curve or a supply curve is a relationship between two, and only two, variables: quantity on the horizontal axis and price on the vertical axis. The assumption behind a demand curve or a supply curve is that no relevant economic factors, other than the product’s price, are changing. Economists call this assumption ceteris paribus, a Latin phrase meaning “other things being equal.” Any given demand or supply curve is based on the ceteris paribus assumption that all else is held equal. A demand curve or a supply curve is a relationship between two, and only two, variables when all other variables are kept constant. If all else is not held equal, then the laws of supply and demand will not necessarily hold, as the following Clear It Up feature shows.
When does ceteris paribus apply?
Ceteris paribus is typically applied when we look at how changes in price affect demand or supply, but ceteris paribus can be applied more generally. In the real world, demand and supply depend on more factors than just price. For example, a consumer’s demand depends on income and a producer’s supply depends on the cost of producing the product. How can we analyze the effect on demand or supply if multiple factors are changing at the same time—say price rises and income falls? The answer is that we examine the changes one at a time, assuming the other factors are held constant.
For example, we can say that an increase in the price reduces the amount consumers will buy (assuming income, and anything else that affects demand, is unchanged). Additionally, a decrease in income reduces the amount consumers can afford to buy (assuming price, and anything else that affects demand, is unchanged). This is what the ceteris paribus assumption really means. In this particular case, after we analyze each factor separately, we can combine the results. The amount consumers buy falls for two reasons: first because of the higher price and second because of the lower income.
Let’s use income as an example of how factors other than price affect demand. Figure 1 shows the initial demand for automobiles as D0. At point Q, for example, if the price is $20, per car, the quantity of cars demanded is 18 million. D0 also shows how the quantity of cars demanded would change as a result of a higher or lower price. For example, if the price of a car rose to $22,, the quantity demanded would decrease to 17 million, at point R.
The original demand curve D0, like every demand curve, is based on the ceteris paribus assumption that no other economically relevant factors change. Now imagine that the economy expands in a way that raises the incomes of many people, making cars more affordable. How will this affect demand? How can we show this graphically?
Return to Figure 1. The price of cars is still $20,, but with higher incomes, the quantity demanded has now increased to 20 million cars, shown at point S. As a result of the higher income levels, the demand curve shifts to the right to the new demand curve D1, indicating an increase in demand. Table 4 shows clearly that this increased demand would occur at every price, not just the original one.
Price | Decrease to D2 | Original Quantity Demanded D0 | Increase to D1 |
---|---|---|---|
$16, | million | million | million |
$18, | million | million | million |
$20, | million | million | million |
$22, | million | million | million |
$24, | million | million | million |
$26, | million | million | million |
Table 4. Price and Demand Shifts: A Car Example |
Now, imagine that the economy slows down so that many people lose their jobs or work fewer hours, reducing their incomes. In this case, the decrease in income would lead to a lower quantity of cars demanded at every given price, and the original demand curve D0 would shift left to D2. The shift from D0 to D2 represents such a decrease in demand: At any given price level, the quantity demanded is now lower. In this example, a price of $20, means 18 million cars sold along the original demand curve, but only million sold after demand fell.
When a demand curve shifts, it does not mean that the quantity demanded by every individual buyer changes by the same amount. In this example, not everyone would have higher or lower income and not everyone would buy or not buy an additional car. Instead, a shift in a demand curve captures an pattern for the market as a whole.
In the previous section, we argued that higher income causes greater demand at every price. This is true for most goods and services. For some—luxury cars, vacations in Europe, and fine jewelry—the effect of a rise in income can be especially pronounced. A product whose demand rises when income rises, and vice versa, is called a normal good. A few exceptions to this pattern do exist. As incomes rise, many people will buy fewer generic brand groceries and more name brand groceries. They are less likely to buy used cars and more likely to buy new cars. They will be less likely to rent an apartment and more likely to own a home, and so on. A product whose demand falls when income rises, and vice versa, is called an inferior good. In other words, when income increases, the demand curve shifts to the left.
Income is not the only factor that causes a shift in demand. Other things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations. A change in any one of the underlying factors that determine what quantity people are willing to buy at a given price will cause a shift in demand. Graphically, the new demand curve lies either to the right (an increase) or to the left (a decrease) of the original demand curve. Let’s look at these factors.
Changing Tastes or Preferences
From to , the per-person consumption of chicken by Americans rose from 48 pounds per year to 85 pounds per year, and consumption of beef fell from 77 pounds per year to 54 pounds per year, according to the U.S. Department of Agriculture (USDA). Changes like these are largely due to movements in taste, which change the quantity of a good demanded at every price: that is, they shift the demand curve for that good, rightward for chicken and leftward for beef.
Changes in the Composition of the Population
The proportion of elderly citizens in the United States population is rising. It rose from % in to % in , and will be a projected (by the U.S. Census Bureau) 20% of the population by A society with relatively more children, like the United States in the s, will have greater demand for goods and services like tricycles and day care facilities. A society with relatively more elderly persons, as the United States is projected to have by , has a higher demand for nursing homes and hearing aids. Similarly, changes in the size of the population can affect the demand for housing and many other goods. Each of these changes in demand will be shown as a shift in the demand curve.
The demand for a product can also be affected by changes in the prices of related goods such as substitutes or complements. A substitute is a good or service that can be used in place of another good or service. As electronic books, like this one, become more available, you would expect to see a decrease in demand for traditional printed books. A lower price for a substitute decreases demand for the other product. For example, in recent years as the price of tablet computers has fallen, the quantity demanded has increased (because of the law of demand). Since people are purchasing tablets, there has been a decrease in demand for laptops, which can be shown graphically as a leftward shift in the demand curve for laptops. A higher price for a substitute good has the reverse effect.
Other goods are complements for each other, meaning that the goods are often used together, because consumption of one good tends to enhance consumption of the other. Examples include breakfast cereal and milk; notebooks and pens or pencils, golf balls and golf clubs; gasoline and sport utility vehicles; and the five-way combination of bacon, lettuce, tomato, mayonnaise, and bread. If the price of golf clubs rises, since the quantity demanded of golf clubs falls (because of the law of demand), demand for a complement good like golf balls decreases, too. Similarly, a higher price for skis would shift the demand curve for a complement good like ski resort trips to the left, while a lower price for a complement has the reverse effect.
Changes in Expectations about Future Prices or Other Factors that Affect Demand
While it is clear that the price of a good affects the quantity demanded, it is also true that expectations about the future price (or expectations about tastes and preferences, income, and so on) can affect demand. For example, if people hear that a hurricane is coming, they may rush to the store to buy flashlight batteries and bottled water. If people learn that the price of a good like coffee is likely to rise in the future, they may head for the store to stock up on coffee now. These changes in demand are shown as shifts in the curve. Therefore, a shift in demand happens when a change in some economic factor (other than price) causes a different quantity to be demanded at every price. The following Work It Out feature shows how this happens.
Shift in Demand
A shift in demand means that at any price (and at every price), the quantity demanded will be different than it was before. Following is an example of a shift in demand due to an income increase.
Step 1. Draw the graph of a demand curve for a normal good like pizza. Pick a price (like P0). Identify the corresponding Q0. An example is shown in Figure 2.
Step 2. Suppose income increases. As a result of the change, are consumers going to buy more or less pizza? The answer is more. Draw a dotted horizontal line from the chosen price, through the original quantity demanded, to the new point with the new Q1. Draw a dotted vertical line down to the horizontal axis and label the new Q1. An example is provided in Figure 3.
Step 3. Now, shift the curve through the new point. You will see that an increase in income causes an upward (or rightward) shift in the demand curve, so that at any price the quantities demanded will be higher, as shown in Figure 4.
Six factors that can shift demand curves are summarized in Figure 5. The direction of the arrows indicates whether the demand curve shifts represent an increase in demand or a decrease in demand. Notice that a change in the price of the good or service itself is not listed among the factors that can shift a demand curve. A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.
When a demand curve shifts, it will then intersect with a given supply curve at a different equilibrium price and quantity. We are, however, getting ahead of our story. Before discussing how changes in demand can affect equilibrium price and quantity, we first need to discuss shifts in supply curves.
A supply curve shows how quantity supplied will change as the price rises and falls, assuming ceteris paribus so that no other economically relevant factors are changing. If other factors relevant to supply do change, then the entire supply curve will shift. Just as a shift in demand is represented by a change in the quantity demanded at every price, a shift in supply means a change in the quantity supplied at every price.
In thinking about the factors that affect supply, remember what motivates firms: profits, which are the difference between revenues and costs. Goods and services are produced using combinations of labor, materials, and machinery, or what we call inputs or factors of production. If a firm faces lower costs of production, while the prices for the good or service the firm produces remain unchanged, a firm’s profits go up. When a firm’s profits increase, it is more motivated to produce output, since the more it produces the more profit it will earn. So, when costs of production fall, a firm will tend to supply a larger quantity at any given price for its output. This can be shown by the supply curve shifting to the right.
Take, for example, a messenger company that delivers packages around a city. The company may find that buying gasoline is one of its main costs. If the price of gasoline falls, then the company will find it can deliver messages more cheaply than before. Since lower costs correspond to higher profits, the messenger company may now supply more of its services at any given price. For example, given the lower gasoline prices, the company can now serve a greater area, and increase its supply.
Conversely, if a firm faces higher costs of production, then it will earn lower profits at any given selling price for its products. As a result, a higher cost of production typically causes a firm to supply a smaller quantity at any given price. In this case, the supply curve shifts to the left.
Consider the supply for cars, shown by curve S0 in Figure 6. Point J indicates that if the price is $20,, the quantity supplied will be 18 million cars. If the price rises to $22, per car, ceteris paribus, the quantity supplied will rise to 20 million cars, as point K on the S0 curve shows. The same information can be shown in table form, as in Table 5.
Price | Decrease to S1 | Original Quantity Supplied S0 | Increase to S2 |
---|---|---|---|
$16, | million | million | million |
$18, | million | million | million |
$20, | million | million | million |
$22, | million | million | million |
$24, | million | million | million |
$26, | million | million | million |
Table 5. Price and Shifts in Supply: A Car Example |
Now, imagine that the price of steel, an important ingredient in manufacturing cars, rises, so that producing a car has become more expensive. At any given price for selling cars, car manufacturers will react by supplying a lower quantity. This can be shown graphically as a leftward shift of supply, from S0 to S1, which indicates that at any given price, the quantity supplied decreases. In this example, at a price of $20,, the quantity supplied decreases from 18 million on the original supply curve (S0) to million on the supply curve S1, which is labeled as point L.
Conversely, if the price of steel decreases, producing a car becomes less expensive. At any given price for selling cars, car manufacturers can now expect to earn higher profits, so they will supply a higher quantity. The shift of supply to the right, from S0 to S2, means that at all prices, the quantity supplied has increased. In this example, at a price of $20,, the quantity supplied increases from 18 million on the original supply curve (S0) to million on the supply curve S2, which is labeled M.
In the example above, we saw that changes in the prices of inputs in the production process will affect the cost of production and thus the supply. Several other things affect the cost of production, too, such as changes in weather or other natural conditions, new technologies for production, and some government policies.
The cost of production for many agricultural products will be affected by changes in natural conditions. For example, in the Manchurian Plain in Northeastern China, which produces most of the countrys wheat, corn, and soybeans, experienced its most severe drought in 50 years. A drought decreases the supply of agricultural products, which means that at any given price, a lower quantity will be supplied; conversely, especially good weather would shift the supply curve to the right.
When a firm discovers a new technology that allows the firm to produce at a lower cost, the supply curve will shift to the right, as well. For instance, in the s a major scientific effort nicknamed the Green Revolution focused on breeding improved seeds for basic crops like wheat and rice. By the early s, more than two-thirds of the wheat and rice in low-income countries around the world was grown with these Green Revolution seeds—and the harvest was twice as high per acre. A technological improvement that reduces costs of production will shift supply to the right, so that a greater quantity will be produced at any given price.
Government policies can affect the cost of production and the supply curve through taxes, regulations, and subsidies. For example, the U.S. government imposes a tax on alcoholic beverages that collects about $8 billion per year from producers. Taxes are treated as costs by businesses. Higher costs decrease supply for the reasons discussed above. Other examples of policy that can affect cost are the wide array of government regulations that require firms to spend money to provide a cleaner environment or a safer workplace; complying with regulations increases costs.
A government subsidy, on the other hand, is the opposite of a tax. A subsidy occurs when the government pays a firm directly or reduces the firm’s taxes if the firm carries out certain actions. From the firm’s perspective, taxes or regulations are an additional cost of production that shifts supply to the left, leading the firm to produce a lower quantity at every given price. Government subsidies reduce the cost of production and increase supply at every given price, shifting supply to the right. The following Work It Out feature shows how this shift happens.
Shift in Supply
We know that a supply curve shows the minimum price a firm will accept to produce a given quantity of output. What happens to the supply curve when the cost of production goes up? Following is an example of a shift in supply due to a production cost increase.
Step 1. Draw a graph of a supply curve for pizza. Pick a quantity (like Q0). If you draw a vertical line up from Q0 to the supply curve, you will see the price the firm chooses. An example is shown in Figure 7.
Step 2. Why did the firm choose that price and not some other? One way to think about this is that the price is composed of two parts. The first part is the average cost of production, in this case, the cost of the pizza ingredients (dough, sauce, cheese, pepperoni, and so on), the cost of the pizza oven, the rent on the shop, and the wages of the workers. The second part is the firm’s desired profit, which is determined, among other factors, by the profit margins in that particular business. If you add these two parts together, you get the price the firm wishes to charge. The quantity Q0 and associated price P0 give you one point on the firm’s supply curve, as shown in Figure 8.
Step 3. Now, suppose that the cost of production goes up. Perhaps cheese has become more expensive by $ per pizza. If that is true, the firm will want to raise its price by the amount of the increase in cost ($). Draw this point on the supply curve directly above the initial point on the curve, but $ higher, as shown in Figure 9.
Step 4. Shift the supply curve through this point. You will see that an increase in cost causes an upward (or a leftward) shift of the supply curve so that at any price, the quantities supplied will be smaller, as shown in Figure
Changes in the cost of inputs, natural disasters, new technologies, and the impact of government decisions all affect the cost of production. In turn, these factors affect how much firms are willing to supply at any given price.
Figure 11 summarizes factors that change the supply of goods and services. Notice that a change in the price of the product itself is not among the factors that shift the supply curve. Although a change in price of a good or service typically causes a change in quantity supplied or a movement along the supply curve for that specific good or service, it does not cause the supply curve itself to shift.
Because demand and supply curves appear on a two-dimensional diagram with only price and quantity on the axes, an unwary visitor to the land of economics might be fooled into believing that economics is about only four topics: demand, supply, price, and quantity. However, demand and supply are really “umbrella” concepts: demand covers all the factors that affect demand, and supply covers all the factors that affect supply. Factors other than price that affect demand and supply are included by using shifts in the demand or the supply curve. In this way, the two-dimensional demand and supply model becomes a powerful tool for analyzing a wide range of economic circumstances.
Economists often use the ceteris paribus or “other things being equal” assumption: while examining the economic impact of one event, all other factors remain unchanged for the purpose of the analysis. Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices. Factors that can shift the supply curve for goods and services, causing a different quantity to be supplied at any given price, include input prices, natural conditions, changes in technology, and government taxes, regulations, or subsidies.
Self-Check Questions
- Why do economists use the ceteris paribus assumption?
- In an analysis of the market for paint, an economist discovers the facts listed below. State whether each of these changes will affect supply or demand, and in what direction.
- There have recently been some important cost-saving inventions in the technology for making paint.
- Paint is lasting longer, so that property owners need not repaint as often.
- Because of severe hailstorms, many people need to repaint now.
- The hailstorms damaged several factories that make paint, forcing them to close down for several months.
- Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary.
- Cars are becoming more fuel efficient, and therefore get more miles to the gallon.
- The winter is exceptionally cold.
- A major discovery of new oil is made off the coast of Norway.
- The economies of some major oil-using nations, like Japan, slow down.
- A war in the Middle East disrupts oil-pumping schedules.
- Landlords install additional insulation in buildings.
- The price of solar energy falls dramatically.
- Chemical companies invent a new, popular kind of plastic made from oil.
Review Questions
- When analyzing a market, how do economists deal with the problem that many factors that affect the market are changing at the same time?
- Name some factors that can cause a shift in the demand curve in markets for goods and services.
- Name some factors that can cause a shift in the supply curve in markets for goods and services.
Critical Thinking Questions
- Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not? Illustrate your answer with a graph.
- How do you suppose the demographics of an aging population of “Baby Boomers” in the United States will affect the demand for milk? Justify your answer.
- We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically?
- Suppose there is soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Can you show this graphically? Hint: assume that the soda tax is collected from the sellers
Problems
- Table 6 shows information on the demand and supply for bicycles, where the quantities of bicycles are measured in thousands.
Price Qd Qs $ 50 36 $ 40 40 $ 32 48 $ 28 56 $ 24 70 Table 6. Demand and Supply for Bicycles - What is the quantity demanded and the quantity supplied at a price of $?
- At what price is the quantity supplied equal to 48,?
- Graph the demand and supply curve for bicycles. How can you determine the equilibrium price and quantity from the graph? How can you determine the equilibrium price and quantity from the table? What are the equilibrium price and equilibrium quantity?
- If the price was $, what would the quantities demanded and supplied be? Would a shortage or surplus exist? If so, how large would the shortage or surplus be?
- The computer market in recent years has seen many more computers sell at much lower prices. What shift in demand or supply is most likely to explain this outcome? Sketch a demand and supply diagram and explain your reasoning for each.
- A rise in demand
- A fall in demand
- A rise in supply
- A fall in supply
Landsburg, Steven E. The Armchair Economist: Economics and Everyday Life. New York: The Free Press. specifically Section IV: How Markets Work.
National Chicken Council. Per Capita Consumption of Poultry and Livestock, to Estimated , in Pounds. Accessed April 13, http://www.nationalchickencouncil.org/about-the-industry/statistics/per-capita-consumption-of-poultry-and-livestockto-estimatedin-pounds/.
Wessel, David. “Saudi Arabia Fears $a-Barrel Oil, Too.” The Wall Street Journal. May 27, , p. http://online.wsj.com/news/articles/SB
Glossary
- ceteris paribus
- other things being equal
- complements
- goods that are often used together so that consumption of one good tends to enhance consumption of the other
- factors of production
- the combination of labor, materials, and machinery that is used to produce goods and services; also called inputs
- inferior good
- a good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls
- inputs
- the combination of labor, materials, and machinery that is used to produce goods and services; also called factors of production
- normal good
- a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls
- shift in demand
- when a change in some economic factor (other than price) causes a different quantity to be demanded at every price
- shift in supply
- when a change in some economic factor (other than price) causes a different quantity to be supplied at every price
- substitute
- a good that can replace another to some extent, so that greater consumption of one good can mean less of the other
Solutions
Answers to Self-Check Questions
- To make it easier to analyze complex problems. Ceteris paribus allows you to look at the effect of one factor at a time on what it is you are trying to analyze. When you have analyzed all the factors individually, you add the results together to get the final answer.
- An improvement in technology that reduces the cost of production will cause an increase in supply. Alternatively, you can think of this as a reduction in price necessary for firms to supply any quantity. Either way, this can be shown as a rightward (or downward) shift in the supply curve.
- An improvement in product quality is treated as an increase in tastes or preferences, meaning consumers demand more paint at any price level, so demand increases or shifts to the right. If this seems counterintuitive, note that demand in the future for the longer-lasting paint will fall, since consumers are essentially shifting demand from the future to the present.
- An increase in need causes an increase in demand or a rightward shift in the demand curve.
- Factory damage means that firms are unable to supply as much in the present. Technically, this is an increase in the cost of production. Either way you look at it, the supply curve shifts to the left.
- More fuel-efficient cars means there is less need for gasoline. This causes a leftward shift in the demand for gasoline and thus oil. Since the demand curve is shifting down the supply curve, the equilibrium price and quantity both fall.
- Cold weather increases the need for heating oil. This causes a rightward shift in the demand for heating oil and thus oil. Since the demand curve is shifting up the supply curve, the equilibrium price and quantity both rise.
- A discovery of new oil will make oil more abundant. This can be shown as a rightward shift in the supply curve, which will cause a decrease in the equilibrium price along with an increase in the equilibrium quantity. (The supply curve shifts down the demand curve so price and quantity follow the law of demand. If price goes down, then the quantity goes up.)
- When an economy slows down, it produces less output and demands less input, including energy, which is used in the production of virtually everything. A decrease in demand for energy will be reflected as a decrease in the demand for oil, or a leftward shift in demand for oil. Since the demand curve is shifting down the supply curve, both the equilibrium price and quantity of oil will fall.
- Disruption of oil pumping will reduce the supply of oil. This leftward shift in the supply curve will show a movement up the demand curve, resulting in an increase in the equilibrium price of oil and a decrease in the equilibrium quantity.
- Increased insulation will decrease the demand for heating. This leftward shift in the demand for oil causes a movement down the supply curve, resulting in a decrease in the equilibrium price and quantity of oil.
- Solar energy is a substitute for oil-based energy. So if solar energy becomes cheaper, the demand for oil will decrease as consumers switch from oil to solar. The decrease in demand for oil will be shown as a leftward shift in the demand curve. As the demand curve shifts down the supply curve, both equilibrium price and quantity for oil will fall.
- A new, popular kind of plastic will increase the demand for oil. The increase in demand will be shown as a rightward shift in demand, raising the equilibrium price and quantity of oil.
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