SUPPLY & DEMAND – ECONOMICS PROJECT

PROJECT OBJECTIVES: (100 pts.) DUE DATE: _________

 Demonstrate the ability to comprehend the effects of the interaction between supply & demand
in a market society.

 Predict the outcomes when various economic situations occur.

Join with one other member and do the following:

A. Choose a product with which you are familiar (i.e. Starbuck’s Frappuccinos) that will be
affected by the dynamics of the market economy.
B. Make up two different headlines for two graphs relating to factors causing a shift in demand,
then show how each will impact the product related to either surpluses or shortages and
ultimately a change in the equilibrium price. One must be an increase in demand, the other a
decrease in demand. You may only use each cause of a shift once!!! such as population.
C. Do the same for two factors causing a shift in supply. You must draw a separate graph for
each factor. You may only use each cause of a shift once!!! such as technology.
D. Type a paragraph about each of your graphs (four total) to predict whether the product will
demonstrate an increase or decrease in demand or supply and what will have to happen
economically (i.e., shortage, surplus, price increase, price decrease).

EACH POSTER SHOULD CONTAIN:

A. Name of product (3 pts.) Bob’s Polo T-Shirt Company
B. Headline affecting change in supply or demand
(5 pts. Ea.)
C. GRAPH – Labeled correctly and completely
(S & D Shifts) (13 pts. Each)
D. Reason for the shift (5 pts. Ea.) Demand for Polo T-
E. Spelling/Grammar (5 pts.) Shirts

“Schools Require
CAUSES FOR A CHANGE IN DEMAND: Students to Wear Polo T- 2
Shirts for School
 Fads/tastes/preferences/ads Uniforms” [Population
1
change or Preferences]
 Consumer expectations
 Substitute goods/services
 Complementary goods
 Population changes
 Income changes
2 Supply for Polo T-
CAUSES FOR A CHANGE IN SUPPLY: 1 Shirts

 Cost of production (inputs) “Employee Salaries

increase 7% at Bob’s T-
 Technology shirt Company” [Cost of
 Number of sellers Production]
 Global Events
 Events of Nature
 Government intervention
(tariffs, subsidies, taxes, regulations)
 SAMPLE EXPLANATIONS

CHANGE IN DEMAND:

“Schools Require Students to Wear Polo T-Shirts for School Uniforms”

[Population change or Preferences]

Due to a new regulation that requires school children to wear Polo T-Shirts as part of

their school uniforms, the overall demand for Polo T-Shirts will increase at all prices. The

reason is an increase of the population that wears Polo T-Shirts (or a change in preference

from casual clothing to Polo T-Shirts). As a result of this increase in demand, a shortage will

occur because more people will be demanding (purchasing) Polo T-Shirts, but there won’t be

enough Polo T-Shirts to satisfy the demand. As a result, the price will rise to the point

where the shortage is eliminated and a new equilibrium price will be established.

CHANGE IN SUPPLY:

“Employee Salaries Increase 7% at Bob’s T-Shirt Company”

[Cost of Production]

When Bob’s T-Shirt Company had to raise employee salaries as a result of the state’s

minimum wage increase, they were increasing their costs of doing business. As a result of

their increase in expenses (cost of production), they aren’t able to produce the same

quantity of T-Shirts for the same cost before the pay raise so the supply decreases for all T-

Shirts at all prices. Consequently, they are decreasing the supply of T-Shirts which would

lead to a shortage. In order to eliminate the shortage, Bob’s T-Shirt Company can raise

the price for Polo T-Shirts to a new equilibrium price.

 SUPPLY & DEMAND – ECONOMICS PROJECT RUBRIC
Assignment Points Earned Maximum Points Comments

1 Name of the product 3 Points

2 Cause for change Headlines & 20 Points

Determinants (5 pts. Each)
(2 demand and 2 supply)

3a Demand Increase GRAPH

- Labeled correctly and completely
– 5 points
- S & D Shifts with arrows – 4 13 Points
points
- Label both Equilibrium Price
Points – 4 points (1 pt. each)
3b Demand Decrease GRAPH
- Labeled correctly and completely
– 5 points
- S & D Shifts with arrows – 4 13 Points
points
- Label both Equilibrium Price
Points –4 points (1 pt. each)
3c Supply Increase GRAPH
- Labeled correctly and completely
– 5 points
- S & D Shifts with arrows – 4 13 Points
points
- Label both Equilibrium Price
Points – 4 points (1 pt. each)
3d Supply Decrease GRAPH
- Labeled correctly and completely
– 5 points
- S & D Shifts with arrows – 4 13 Points
points
- Label both Equilibrium Price
Points – 4 points (1 pt. each)

4 Reason for the Shift 20 points

(paragraph with underlined/bold key (5 points EACH)
terms)

Spelling and grammar

5 (correct spelling and proper grammar 5 points
were utilized throughout paper)

TOTAL 100 points

Name: ______________________________________________________ Student #: __________

Name: ______________________________________________________ Student #: __________