Shifting Supply & Demand Practice Worksheet - Includes Answer Key ... - Free Printable

Let’s go through each scenario one by one. We’re trying to figure out:

- Does the event cause supply or demand to change?
- Does it cause an increase or decrease?
- What happens to price and quantity as a result?

We’ll use basic supply and demand logic:
- If demand increases, price and quantity both go up (assuming supply stays same).
- If demand decreases, price and quantity both go down.
- If supply increases, price goes down, quantity goes up.
- If supply decreases, price goes up, quantity goes down.

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1. Market: Frozen Waffles
*Reasoning:* The price of syrup rises.
→ Syrup is often eaten with waffles — they are complements.
→ When syrup gets more expensive, people buy less syrup → so they also buy fewer waffles.
→ This means demand for frozen waffles decreases.
→ Lower demand → lower price and lower quantity.

✔ Supply/Demand: Demand Decrease
✔ Price: Decrease
✔ Quantity: Decrease

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2. Market: Surfboards
*Reasoning:* There is a population boom in coastal California.
→ More people near the coast = more potential surfers.
→ So, more people want to buy surfboards → demand increases.
→ Higher demand → higher price and higher quantity.

✔ Supply/Demand: Demand Increase
✔ Price: Increase
✔ Quantity: Increase

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3. Market: Party Tanks *(Note: Likely meant “Party Tents” or similar — but we’ll assume “tanks” as in inflatable party tanks)*
*Reasoning:* The price of gelatin, used to make party tents, falls by 50%.
→ Gelatin is an input (cost) for making these products.
→ Cheaper inputs → cheaper to produce → suppliers can make more at every price → supply increases.
→ Increased supply → lower price, higher quantity.

✔ Supply/Demand: Supply Increase
✔ Price: Decrease
✔ Quantity: Increase

*(Note: If “party tanks” was a typo and meant something else like “fish tanks”, the logic still holds if gelatin is an input — though unlikely. But since problem says “used to make party tents”, we follow that.)*

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4. Market: Computer Games
*Reasoning:* Labor in computer games strike next week.
→ Strike means workers aren’t working → production slows or stops → supply decreases.
→ Less supply → higher price, lower quantity.

✔ Supply/Demand: Supply Decrease
✔ Price: Increase
✔ Quantity: Decrease

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5. Market: Broccoli
*Reasoning:* Health magazine reports eating broccoli cures cancer.
→ Big health benefit → more people want to eat broccoli → demand increases.
→ Higher demand → higher price and higher quantity.

✔ Supply/Demand: Demand Increase
✔ Price: Increase
✔ Quantity: Increase

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Final Answer:
1. Demand Decrease, Price: Decrease, Quantity: Decrease
2. Demand Increase, Price: Increase, Quantity: Increase
3. Supply Increase, Price: Decrease, Quantity: Increase
4. Supply Decrease, Price: Increase, Quantity: Decrease
5. Demand Increase, Price: Increase, Quantity: Increase