Note about how to answer the questions:

The first part of the answer is only one
of these options:

•decrease in supply

•increase in supply

•decrease in demand

•increase in demand

The second part is one of the options
below (if you choose change in demand, then the 2nd part must be a demand
determinant and the same for supply):

Demand Determinants

•Consumer tastes &
preferences

•Number of buyers in
the market

•Change in consumer
income

•Change in price of a
related good (specify substitute or complementary good)

•Consumer expectations

Supply Determinants

•Resource prices

•Improvements in
technology

•Taxes & Subsidies

•Prices of other goods

•Producer expectations

Number of sellers in the market

For each scenario in the attached document, identify whether there has been an
increase in demand, a decrease in demand, an increase in supply or a decrease
in supply and state which determinant accounts for the shift. An example is
below.

Example: Corporate income tax rates
for businesses increase. How will this affect the market for

most goods and services?

Decrease in supply Change in taxes or
subsidies

Attachments:

GradedActivit….doc