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Copy and paste all of this into MS Word and answer the questions there.

Be sure to save it in My
documents

Complete the answer sheet, save it then submit it to the dropbox.

Explain what will happen to Demand, Supply and finally Price (in that order), if the following FICTIONAL
things happen:

example: a famous basketball player literally has his foot go through a shoe during a televised game, due
to a defect in the shoe.

Answer: The demand for the brand of shoe will drop (who wants to buy defective shoes), the company
will be left with too much supply and they will have to drop the price. If they are cheap enough, maybe
some will be willing to take a chance
1. Mr. Burattini loves to eat pizza and eats a lot of it, regularly. Recently he has decided to lose
weight and will no longer order pizza from the local pizza places in town.
The Pizza place’s demand will go down, meaning the supply will go up. So they have to drop the
price in order to sell more of the supply.

2. A famous rock star shows up at an awards show wearing a new style of pants.
The demand of the pants will go up, meaning the stock will go down, then no one will be buying
it (since there is no stock) so they will have to lower the prices of the pants.

3. Chocolate is found to cause hair loss.


The demand of the chocolate will go down, meaning the supply will go up. So the company will
try to get people to buy it at a significantly lower price.

4. A new phone has been found to instantly make you popular.


The demand of the phone will go up, and the supply will go down. Then when people get
uninterested in the phone, the company will drop the price.

5. A famous football player says he owes all of his success to an amazing new type of shoe.
The demand of the shoe will increase, the supply in turn will go down, and then when they make
more of the shoe the interest of the show will go down, meaning the company will drop the
price.

6. A famous golfer says he hurt his back sleeping on a bed at a famous hotel chain

The demand of the shoe will go down, meaning the stock will increase, so the company will drop
the price so more people might buy it.