Seeking Equilibrium: Demand and Supply Warm Up 3/4/2013 • Read Interaction of Demand and Supply on PAGES 164-165 1. What happened at Karen’s initial price of $10? • Karen is left with 30 extra salads 2. What happened at Karen’s lowest price of $2? • Karen has a shortage of 30 salads. She also probably doesn’t make very much profit at that price. 3. What is Karen’s equilibrium price? • Karen’s equilibrium price is $6.
8
Embed
Seeking Equilibrium: Demand and Supply Warm Up 3/4/2013 Read Interaction of Demand and Supply on PAGES 164-165 1.What happened at Karen’s initial price.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Seeking Equilibrium: Demand and SupplyWarm Up 3/4/2013
• Read Interaction of Demand and Supply on PAGES 164-1651. What happened at Karen’s initial price of
$10?• Karen is left with 30 extra salads
2. What happened at Karen’s lowest price of $2?• Karen has a shortage of 30 salads. She also
probably doesn’t make very much profit at that price.
3. What is Karen’s equilibrium price?• Karen’s equilibrium price is $6.
Graph it!Karen’s market demand and supply curves
Pric
e pe
r sal
ad in
dol
lars
$
Quantity of salads
0
2
4
6
8
10
0 10 20 30 40 50
Seasonal BUST!
• If you were thinking economically, when is the best time to buy Valentine’s Day candy?
Holiday Toys page 168
1. What happened when Tyco Toys Inc. first introduced Tickle Me Elmo in 1996?
2. What was the sale price during the holidays?
3. What happened to the sale price after the holidays? Explain.
4. Why do suppliers reduce their prices?
Disequilibrium pg 169• Recall- 6 factors of demand?