Explanation:
We are asked to analyze how each scenario affects the
supply or
demand for tennis rackets, and then determine what happens to:
- The
price of tennis rackets (↑ or ↓)
- The
quantity bought/sold (more or fewer)
We’ll go through each of the 10 scenarios one by one. For each, we’ll identify:
- Which curve shifts (demand or supply)
- Direction of shift (right = increase, left = decrease)
- New equilibrium: price and quantity change
First, recall basic rules:
-
Demand increases → demand curve shifts
right → price ↑, quantity ↑
-
Demand decreases → demand curve shifts
left → price ↓, quantity ↓
-
Supply increases → supply curve shifts
right → price ↓, quantity ↑
-
Supply decreases → supply curve shifts
left → price ↑, quantity ↓
Also, axes:
- Vertical axis =
Price
- Horizontal axis =
Quantity
- Downward-sloping line =
Demand
- Upward-sloping line =
Supply
Now let’s do each question:
---
1. The incomes of consumers goes up.
Assumption needed: Tennis rackets are a
normal good (most goods are). When income rises, people buy more normal goods.
→ Demand increases → demand curve shifts
right
→ New equilibrium:
price ↑,
quantity ↑
*(More rackets bought)*
2. The price of graphite increases.
Graphite is a key input in making tennis rackets. Higher input cost → harder/less profitable to produce → supply decreases
→ Supply curve shifts
left
→ New equilibrium:
price ↑,
quantity ↓
*(Fewer rackets bought)*
3. The price of tennis balls increases.
Tennis balls and rackets are
complements (used together). If tennis balls get more expensive, people play less → demand for rackets falls.
→ Demand decreases → demand curve shifts
left
→ New equilibrium:
price ↓,
quantity ↓
*(Fewer rackets bought)*
4. The wages of tennis racket factory workers decreases (but their productivity doesn’t change).
Lower wages = lower production cost → firms can make more at same price → supply increases
→ Supply curve shifts
right
→ New equilibrium:
price ↓,
quantity ↑
*(More rackets bought)*
5. The price of golf clubs goes up.
Golf clubs and tennis rackets are
substitutes in consumption (some people choose one sport over the other). If golf clubs become more expensive, some switch to tennis → demand for rackets increases.
→ Demand increases → demand curve shifts
right
→ New equilibrium:
price ↑,
quantity ↑
*(More rackets bought)*
6. The production process of tennis rackets becomes more efficient.
Better technology or efficiency = more output per unit cost → supply increases
→ Supply curve shifts
right
→ New equilibrium:
price ↓,
quantity ↑
*(More rackets bought)*
7. Wimbledon is showing on television.
This increases interest in tennis → more people want to play → demand for rackets increases
→ Demand increases → demand curve shifts
right
→ New equilibrium:
price ↑,
quantity ↑
*(More rackets bought)*
8. A new company starts making tennis rackets.
More producers = more total supply
→ Supply increases → supply curve shifts
right
→ New equilibrium:
price ↓,
quantity ↑
*(More rackets bought)*
9. To encourage physical activity, the government gives tennis racket producers a subsidy.
Subsidy lowers cost of production → firms supply more at each price
→ Supply increases → supply curve shifts
right
→ New equilibrium:
price ↓,
quantity ↑
*(More rackets bought)*
10. For some reason people think the price of tennis rackets will go up next year.
If people expect higher future prices, they buy more now to avoid paying more later → current demand increases
→ Demand increases → demand curve shifts
right
→ New equilibrium:
price ↑,
quantity ↑
*(More rackets bought)*
Let me double-check each for consistency — all seem correct based on standard microeconomic principles.
Final Answer:
1. Demand ↑ → price ↑, quantity ↑
2. Supply ↓ → price ↑, quantity ↓
3. Demand ↓ → price ↓, quantity ↓
4. Supply ↑ → price ↓, quantity ↑
5. Demand ↑ → price ↑, quantity ↑
6. Supply ↑ → price ↓, quantity ↑
7. Demand ↑ → price ↑, quantity ↑
8. Supply ↑ → price ↓, quantity ↑
9. Supply ↑ → price ↓, quantity ↑
10. Demand ↑ → price ↑, quantity ↑
Parent Tip: Review the logic above to help your child master the concept of worksheet demand answers.
