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.