Additional Examples of Supply and
Demand3AMcGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill
Companies, Inc. All rights reserved.Appendix
LettuceSupply shifts left for lettuceWeather destroys part of
the cropDemand doesnt changeConsumers still want as much lettuce as
before Equilibrium price rises which will reduce the quantity
demandedLO6
Exchange RatesExchange rates the price of one countrys currency
in terms of another countrys currencyCurrency appreciation: the
value of one of the currencies, in terms of the other, has
increasedCurrency depreciation: the value of one of the currencies,
in terms of the other, has decreased.LO6
Exchange RatesLO6 D1S1Q1$1.25Quantity of eurosDollar price of 1
euro D20$1.50Q2
Pink SalmonSupply shifts right for pink salmonNew technologyNew
fishers enter the industryDemand shifts left for pink
salmonIncreases in consumers incomeReductions in the price of
substitutes
LO6
Pink SalmonLO6D1S1Q1P1Quantity (in pounds)Price (per
pound)S2D2P2Q20
GasolineSupply of gasoline decreasesRefinery breakdownsMideast
politics and warfareRising price of oilDemand for gasoline
increasesConsumers incomes increasedLow mileage SUVs popularLO6
GasolineLO6D2S2Q1P2Quantity (in gallons)Price (per
gallon)S1D1P1Q20
SushiSupply shifts rightIncrease in the number of sushi bars
Demand shifts rightConsumers tastes for sushi increasesLO6
Preset PricesPreset prices can cause market imbalancesOlympics
Figure Skating FinalsPreset price results in a shortage of
ticketsOlympics Curling PreliminariesPreset prices result in a
surplus of ticketsLO6
