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This image displays two tables analyzing market dynamics. The first table examines how events affect the private school education market, while the second explores the cinema ticket market. Each table lists events and their effects on demand, supply, and equilibrium price.

A table showing the impact of various events on the demand (D), supply (S), and price (Pₑ) in the market for private school education and the market for cinema tickets.

A table showing the impact of various events on the demand (D), supply (S), and price (Pₑ) in the market for private school education and the market for cinema tickets.

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Show Answer Key & Explanations Step-by-step solution for: Supply & Demand - Markets Worksheet
2) Market for private school education

a) The salary of teachers increases
- D: No change
- S: Decrease (higher costs reduce supply)
- Pₑ: Increase

b) A report is published which states that the quality of public school education has greatly improved
- D: Decrease (fewer parents want private education)
- S: No change
- Pₑ: Decrease

c) The tuition fees for private school education increases
- D: No change
- S: No change
- Pₑ: Increase (this is a movement along the demand curve, not a shift)

d) The cost of buying private school education textbooks increases
- D: No change
- S: Decrease (higher input costs reduce supply)
- Pₑ: Increase

e) The local Government reduces the subsidies on private schools
- D: No change
- S: Decrease (lower subsidies increase costs, reducing supply)
- Pₑ: Increase

3) Market for cinema tickets

a) The price of popcorn increases
- D: Decrease (popcorn is a complement; higher price reduces demand for cinema tickets)
- S: No change
- Pₑ: Decrease

b) A new company Da Wan announces it will open new cinemas in China
- D: No change
- S: Increase (more supply of cinema tickets)
- Pₑ: Decrease

c) The Government blocks all movie watching websites
- D: Increase (people turn to cinemas instead of online viewing)
- S: No change
- Pₑ: Increase

d) Kung Fu Panda 5 comes out which promises to be ‘the best cartoon movie ever!’
- D: Increase (higher demand due to popular movie)
- S: No change
- Pₑ: Increase

e) The cost of renting land for cinemas increases
- D: No change
- S: Decrease (higher costs reduce supply)
- Pₑ: Increase
Parent Tip: Review the logic above to help your child master the concept of supply demand worksheet.
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