ECON 100 Supply and Demand Questions

St. Charles Community College
ECON 100   Survey Economics
Class Discussion Questions

  1. Consider the following data concerning the quantity of large eggs (in dozens)  demanded and supplied per month at a number of prices.

    Price per dozen Quantity Demanded Quantity Supplied
    86¢ 39,000 93,000
    76¢ 48,000 86,000
    66¢ 58,000 78,000
    56¢ 67,000 67,000
    46¢ 75,000 62,000
    39¢ 81,000 59,000
    1. What combination of price and quantity brings this market into equilibrium?
    2. What do you predict will happen if the price drops to39¢ per dozen?
    3. What do you predict will happen if the price rises to 66¢ per dozen?
    4. Explain what would happen if there was a major freeze in Georgia and Delaware which killed enough laying hens  to decrease the monthly production (at each price) by 20,000 dozen?

       

  2. Yummy Bagel is a normal good that is produced and sold by the Yummy Bagel Bakery. Explain what will happen to the equilibrium price and quantity of Yummy Bagels in each of the following scenarios:

    1. Yummy Bagel Bakery buys new, high technology dough preparation equipment and new computer controlled ovens for its bakeries.
    2. Sales increase when it is noticed by a local health expert in a health conscious community that Yummy Bagels contain higher nutritional value than competing bagels.
    3. Good Morning Bakery, a local competitor, drops the price of their bagels.
    4. The local automobile assembly plant which hires many of Yummy Bagel’s customers lays off some employees due to a mild recession and the community’s average income decreases.
    5. The cost of flour used in Yummy Bagels increases significantly.

       

  3. Marco Manitti sells pizza by the slice at a popular ski resort. He completes with other vendors at that site who sell other prepared food and snack food items. How will each of the following scenario changes affect the demand for Marco’s pizza slices?

    1. The cost of natural gas for his pizza ovens increases dramatically.
    2. Taco vendors, Marco’s competitors, dramatically drop the cost of their tacos.
    3. Heavy snows attract record numbers of skiers to the ski resort.

       

  4. How will each of the following scenario changes affect the supply of ice cream cones?

    1. There is an increase in the cost of cones used in ice cream cones.
    2. There is an increase in the price of ice cream cones.
    3. Producers discover that the price of ice cream sundaes is increasing.