For this workbook assignment, the three additional problems that you will create and solve will be supply & demand graphing problems. You will need a RED pencil/pen or pencil for this assignment. Before you start this assignment, please watch all the supply & demand videos. Follow the examples in the videos that cover double shifts.
1. Come up with a market that you would like to look at (example: Coffee Beans). Draw the market in the original equilibrium. Be sure to label the horizontal axis and the vertical axis. Please use blue or black ink/pencil for the axes, the original supply and the original demand curves. Be sure to label P* and Q* on your graph.
2. Write down two events that will disrupt the market (example: More coffee plants were planted 5 years ago and are now mature. Due to increased awareness of the link between drinking coffee and anxiety, people are drinking less coffee).
3. Using your RED pencil/pen, graph what an economist would predict will happen to the supply & demand curves. Be sure to label the new P* and Q* in RED.
4. Provide the solution to the graph and put it in a box next to the graph.
Then, you need to create and solve 3 original problems that are similar problems to the ones that you just did.