Bellringer1. Graph the supply & demand of pizzas2. What is the price where they cross?

3. Describe the situation if the price is $20

Price Quantity Demanded

Quantity Supplied

$25 100 800$20 200 700$15 300 600$10 450 500$5 650 400

Why do stock prices change?• Usually demand, show on board

Prices, not always “fair”, but they are “equal”

• Equilibrium Price• The price where

supply meets demand

• On the graph, its where the D and S curves cross

• No shortage, no surplus

S

D

#4 5th hour flip flops Think back to yesterday- Graph it to find the EQprice

Price Q – Demand Q – Supply

$4 22 8$5 18 11$6 16 14$7 11 18$8 8 22$9 4 25

#4 New pizza chain comes to town

#5 Price of Subway sandwiches decreases

#6 Population doubles

#7 Price of cheese triples

8. Consumers think pizza prices will double in October

9. Government requires pizzas to be served in special “sanitary” boxes

10. Americans try to eat healthier

11. Unemployment rate increases

Short quizGraph the change to the orange market in the following

situations, label the change to price and quantity at equilibrium.

1. New fertilizer increase orange crop yields 20%2. US consumers think price of oranges will decrease

next month3. Orange juice medically proven help lose weight4. Hurricane destroys Florida agricultural land

Graph the change to the ice cream market in the following situations, label the change to price and

quantity at equilibrium.• US median income increases 3%• Price of sugar plummets to new low• Mexican producers increase exports to US• Price of cones increases 5%

Graph the change to the college textbook market in the following situations, label the change to price and quantity at equilibrium.

• FAFSA awards increase by 5%• Grand Canyon Univ builds new Mesa campus• New book publisher opens factory in Malaysia• Textbooks able to be downloaded onto Kindle

or ipads

Graph the change to the Puerto Peñasco hotel market in the following situations, label the change to price and quantity at equilibrium.• New hotel opens on the water• Hotel industry magazine reports Mexican

vacations cheaper in 2015 after Peso devaluation

• Cartel shootout kills 5 people• Average Cancun hotel price declines

Graph the change to the basketball shoe market in the following situations, label the change to price and quantity at equilibrium.

• New Kevin Durant shoe released• Nike opens new Vietnamese factory• Soccer becomes more popular in USA• New sewing machines work 50% faster

Graph the change to the health insurance market in the following situations, label the change to price and quantity at equilibrium.• US government requires all Americans to have

health insurance• US government makes providing health insurance

more expensive• US government lowers income tax rates• Fewer companies provide health insurance in US

Graph the change to the used clothing market in the following situations, label the change to price

and quantity at equilibrium.• Unemployment rate drops 1%• Rap song celebrating thrift stores becomes #1 hit

song• New clothing prices decline• Outbreak of lice found at Salvation Army store

On slates

Identify the changes to the tomato market by drawing

the graph and identifying the part of TRIBE or PEST that

changed.1. Pesticides are outlawed in

the United States2. People in US try to eat

healthier and eat more salads

3. US signs a free-trade deal with India

Food price change• Macro world:

inflation

• Micro world: supply & demand, investment ideas?

• http://www.usatoday.com/story/money/business/2014/03/18/food-prices-rising/6557417/

Computer lab?

Supply/Demand project (50points)• Choose a market that interests you• Identify 3 major corporations involved in the market (-5 if missing)• Explain whether the demand is elastic or inelastic (-10 if missing, -5 if

not explained correctly)• Evaluate the effect of a government price ceiling on your market (-5 if

missing)• Find two articles that affect that market’s supply or demand curves (-

10 for no citation)• Cite your sources, use the Economist or your phone, MLA format• Draw a graph for each article and short explanation of change ,

explain what happens to EqP, identify the determinant that changes (PEST = Supply, TRIBE = Demand) (-2 for each mistake)

• Show the change to secondary market, could be a complement, substitute, or factor of production (-10 if missing)

• Must be color and include a few pictures (-10 if missing)• Make either a color poster or pamphlet, or website

Example: Housing market

Secondary market• Copper wire

10 minutes, partnersa. Which curve would shift? (S or D)b. Which direction? (left or right)c. What happens to equilibrium price? (increase or decrease)

4. Market: college tuition (AZ population doubles)5. Market: Sonoran hotdogs (Man vs. Food visits

Tucson)6. Market: DVD rentals (2008-10)7. Market: flat screen tvs (2012), What has been happening to

Eqp?

8. Market: Seattle Seahawks tickets (2014)9. Market: Cellphone service (after iphone, blackberry, droid)

10. Market: Apple stock (Apple announces record profits)

11. Market: Facebook stock (FB becomes publically traded)

Slates 1. How old do you think the video game

industry is?2. What type of good is a video game?

(inferior or normal?)3. List two substitutes for video games.

Video Games• New in 1975• $10.3 Billion in 2010

Electronic Arts Inc. (Public, NASDAQ:ERTS)

Nintendo Co., Ltd (ADR) (Public, OTC:NTDOY

Take-Two Interactive Software, Inc. (Public, NASDAQ:TTWO

Activision Blizzard, Inc. (Public, NASDAQ:ATVI

Mid term exam review• ½ sheet ok, also save it for Final Exam review• Shifts to S/D• TRIBE & PEST• Equilibrium price• Inferior vs. normal goods• Complements vs. subs• PPF graph• Opportunity costs• Scarcity• Entrepreneurs• 3 factors of production• Revenue Maximization

• Elasticity (& its graph)• Bull vs. bear market• NYSE• Brokerage account• Stock prices (52 wk

high/low)• Diminishing Marginal

Returns• Invisible hand• Price floors• Price ceilings