Supply and Demand Problems Name: _________________________________________

Directions: For each of the following problems, state which curve would shift: the supply curve or the demand curve. Then state whether the curve
would shift to the right or shift to the left. Then choose the letter of the correct graph that displays that change.

A B C D

Market Event Would the Would the Letter that Supply or Demand
demand curve curve shift to represents the Determinant
or supply the right or change in either the
curve shift? left? S or D line
1. wheat A drought destroys much of the crop. S L D COST OF RES.
2. redwood Environmentalists urge consumers to boycott D L B TRENDS
lumber redwood products.
3. cigars A new study shows that smoking cigars results D L B EXPECTATIONS
in lots of wrinkles.
4. butter The price of margarine goes up. D R A SUBSTITUTES
5. paper The price of wood rises. S L D RESOURCES
6. Hula hoops Brad Pitt confides to People magazine that "he D R A TRENDS
gets a big kick out of his hula hoop."
7. yachts The average price of stocks falls by over 20% D L B INCOME AND
between now and the end of the year. EXPECTATIONS
8. gasoline Large sports-utility vehicles (like Suburbans and D R A COMPLIMENTARY
Expeditions) become more popular. GOODS
9. umbrellas Heavy rain is forecast. D R A EXPECTATIONS
10. iPhone A new technology company is expected to D L B SUBSTITUTES
emerge with a phone better than the iPhone
11. gasoline Two oil supertankers collide. S L D # OF SUPPLIERS
12. hamburger The price of hamburger rises. D L B INCOME
13. oranges There's an early frost which destroys much of S L D #OF SUPPLIERS
the crop.
14. apples A new pesticide is developed which controls S R C TECHNOLOGY
tent caterpillars.
15. grapes The National Marines Fisheries Service bans S L D GOVERNMENT
pesticide spraying within 1,000 feet of POLICIES
waterways containing coho salmon.
16. beef The price of chicken doubles D R A SUBSTITUTES
17. U.S. cars The price of steel skyrockets S L D COST OF
RESOURCES
18. hospital beds Scientists discover a pill that cures cancer. D B R TRENDS
S L D TECHNOLOGY
19. cement A 7.9 earthquake hits San Francisco. D R A EXPECTATIONS
20. Video The price of getting cable TV goes up. D R A INCOME
rentals
21. windshields A new law is passed requiring gravel trucks to D L B TRENDS
cover their loads with tarps.
22. Taxi service Local subway workers go on strike D R A SUBSTITUTES
23. Bike helmets The price of bicycles goes down D R A COMPLIMENTARY
GOODS
24. melons The cost of water goes up. S L D COST OF RESOUR.
25. Harris Teeter The price of Lowe’s Foods milk goes down. D L B COMP. GOODS
milk
26. jellybeans The price of jellybeans goes up. D L B INCOME
27. Oreo cookies The price of milk increases. D L B COMP. GOODS
28. Burger King McDonald's lowers the price of Big Macs. D L B SUB. GOODS
whoppers
29. Hot dogs 60 Minutes does an expose called "The Truth D L B EXPECTATIONS
about Hot Dogs."
30. Hot dog The price of flour rises S L D COST OF RES.
buns
31. butter Mad Cow Disease wipes out a lot of dairy cows. S L D COST OF RES.
32. candles An electric company official announces that a D R A EXPECTATIONS
computer bug will likely result in power
outages.