Microeconomics Topic 2.1
Demand
Part 1: Check Your Understanding- Identify if each statement regarding the market for popcorn is true or false.
1. The demand for popcorn is determined by the number of producers that are willing and able to
produce popcorn. False
2. A decrease in the price of popcorn will increase the quantity demanded of popcorn.
True
3. Popcorn consumers that experience diminishing marginal utility will be willing to pay lower prices for
more popcorn. True
4. An increase in the price of potato chips, a substitute for popcorn, will cause the demand curve for
popcorn to shift to the left. False
Part 2: Graph It- The demand schedule is
for a soda vending machine in a local park.
The data was compiled over several weeks
in the winter. Complete the following.
1.50
5. Graph a demand curve for soda based on the i
data in the demand schedule. 1.25
6. How will the data in the demand schedule 1.00
most likely change in the summer? Explain.
It willincreaseandcurveoutto
therightbecauseincrease willyour 5 to to do to
Part 3: Practice- Show what happens to the demand curve for soda for each of the following scenarios.
7. The price of bottled water, a substitute, increases 8. The price of soda increases
price price
Mr
it
avanity D avunity
9. A new study shows that drinking soda causes blindness 10. Soda is a normal good and incomes increase
price price
This is a
preference
Xecrease
YI
Video Help: https://goo.gl/ZUENba
Tudanity
©Copyright Jacob Clifford 2021. Annual license required
Do not use unless you have purchased a license
, Microeconomics Topic 2.2
Supply
Part 1: Check Your Understanding- Complete the following.
1. Explain how the law of supply is related to the idea of opportunity cost.
Its relatedbecause it correlers to theprice
andquantitysupplied
2. Will an excise tax cause the supply curve to shift right or shift left? Explain your reasoning.
shift left becausenot as manypeoplewouldwant it
Part 2: Graph It- Assume you can produce and sell wallets made from duct tape. The supply schedule below shows
the price and quantity supplied. Complete the following.
Price
3. Graph a supply curve for duct tape wallets
based on the data in the supply schedule.
4. Assume that it’s finals week and you need to
ii.am
study for your exams. Explain how the data in
the supply schedule will most likely change.
I hitfate h Eme
i
m
araucaroover
Part 3: Practice- Show what happens to the supply curve for soda for each of the following scenarios. Assume that
sugar is used to produce soda.
5. A hurricane destroys a sugarcane crop 6. A new company launches a new brand of soda
Price Price
d
i
ainity dinity
7. A new machine helps refine sugar twice as fast 8. The price of soda increases
Price Price
D
Video Help:https://goo.gl/T4BwGZ
a'unity Pinity
©Copyright Jacob Clifford 2021. Annual license required
Do not use unless you have purchased a license
, Microeconomics Topic 2.3
Price Elasticity of Demand
Part 1: Practice- Assume that comic book store owners compiled data regarding the prices and quantities sold of the
following products. Use the information in the table to answer the questions.
1. Calculate the elasticity of demand coefficient for Avengers posters. 6050150 x100 20percent.cnngein
1 25 quality 6
2. Which product has the most elastic demand? How can you tell? 85 251 245
PhineasandFerbtshirtsbecauseitshighestcoerfients
3. Which product has relatively inelastic demand? How can you tell?
vintagestarwarsactionfiguresandsupermanmugs
because less thanone
4. Which product has unit elastic demand according to it’s elasticity of demand coefficient?
Batmanflashlightscauseitswant
5. Explain why store owners will likely not put Vintage Star Wars action figures on sale for $5.
Becausetheywillloosemoney initialpricecostsmore
6. Assume that one of the store owners lowered the price of Phineas and Ferb t-shirts to $16. Would this most likely
increase or decrease the owner’s total revenue? Explain.
totalrevenuewouldgoupbecausethepriceisgoingdown
Part 2: Article Analysis- Read the excerpt from the 2018 article about a football stadium and complete the following.
“When the Atlanta Falcons announced the food prices at their new $1.5 billion stadium -- $2 hot dogs and sodas, $3
nachos... -- fans loved it….. The Falcons owner had made a calculated bet that what the organization lost in price
markup, it would recoup in volume -- fans would come earlier, stay longer and buy enough food to make up the
difference. About 6,000 more fans per game entered the stadium earlier than they did in 2016, and in general, the
venue sold as much food by the end of the first quarter of Falcons games as it did in full games in 2016. [Fans] also
bought more food -- sales were up 53 percent -- and each fan spent, on average, 16 percent more on concessions
(food and drinks). Atlanta’s pricing is a dramatic departure from standard prices in NFL stadiums. At $2, hot dogs at
Falcons home games cost less than half the league average $5, according to the 2016 Team Marketing Report.”
7. Explain why the success of the pricing strategy depended heavily on the elasticity of demand of the food and
drinks sold in the stadium.
8. If the price of food and drinks decreased by more than 53% and “sales were up 53 percent,” is the demand for
concessions in the stadium relatively inelastic, relatively elastic, or unit elastic? Explain.
9. Assume that the stadium owner decided to allow unaffiliated vendors to sell nachos inside the stadium. Would the
demand for nachos become more inelastic or more elastic? Explain your reasoning.
Video Help: https://youtu.be/nAT_shQGlIk ©Copyright Jacob Clifford 2021. Annual license required
Do not use unless you have purchased a license
Demand
Part 1: Check Your Understanding- Identify if each statement regarding the market for popcorn is true or false.
1. The demand for popcorn is determined by the number of producers that are willing and able to
produce popcorn. False
2. A decrease in the price of popcorn will increase the quantity demanded of popcorn.
True
3. Popcorn consumers that experience diminishing marginal utility will be willing to pay lower prices for
more popcorn. True
4. An increase in the price of potato chips, a substitute for popcorn, will cause the demand curve for
popcorn to shift to the left. False
Part 2: Graph It- The demand schedule is
for a soda vending machine in a local park.
The data was compiled over several weeks
in the winter. Complete the following.
1.50
5. Graph a demand curve for soda based on the i
data in the demand schedule. 1.25
6. How will the data in the demand schedule 1.00
most likely change in the summer? Explain.
It willincreaseandcurveoutto
therightbecauseincrease willyour 5 to to do to
Part 3: Practice- Show what happens to the demand curve for soda for each of the following scenarios.
7. The price of bottled water, a substitute, increases 8. The price of soda increases
price price
Mr
it
avanity D avunity
9. A new study shows that drinking soda causes blindness 10. Soda is a normal good and incomes increase
price price
This is a
preference
Xecrease
YI
Video Help: https://goo.gl/ZUENba
Tudanity
©Copyright Jacob Clifford 2021. Annual license required
Do not use unless you have purchased a license
, Microeconomics Topic 2.2
Supply
Part 1: Check Your Understanding- Complete the following.
1. Explain how the law of supply is related to the idea of opportunity cost.
Its relatedbecause it correlers to theprice
andquantitysupplied
2. Will an excise tax cause the supply curve to shift right or shift left? Explain your reasoning.
shift left becausenot as manypeoplewouldwant it
Part 2: Graph It- Assume you can produce and sell wallets made from duct tape. The supply schedule below shows
the price and quantity supplied. Complete the following.
Price
3. Graph a supply curve for duct tape wallets
based on the data in the supply schedule.
4. Assume that it’s finals week and you need to
ii.am
study for your exams. Explain how the data in
the supply schedule will most likely change.
I hitfate h Eme
i
m
araucaroover
Part 3: Practice- Show what happens to the supply curve for soda for each of the following scenarios. Assume that
sugar is used to produce soda.
5. A hurricane destroys a sugarcane crop 6. A new company launches a new brand of soda
Price Price
d
i
ainity dinity
7. A new machine helps refine sugar twice as fast 8. The price of soda increases
Price Price
D
Video Help:https://goo.gl/T4BwGZ
a'unity Pinity
©Copyright Jacob Clifford 2021. Annual license required
Do not use unless you have purchased a license
, Microeconomics Topic 2.3
Price Elasticity of Demand
Part 1: Practice- Assume that comic book store owners compiled data regarding the prices and quantities sold of the
following products. Use the information in the table to answer the questions.
1. Calculate the elasticity of demand coefficient for Avengers posters. 6050150 x100 20percent.cnngein
1 25 quality 6
2. Which product has the most elastic demand? How can you tell? 85 251 245
PhineasandFerbtshirtsbecauseitshighestcoerfients
3. Which product has relatively inelastic demand? How can you tell?
vintagestarwarsactionfiguresandsupermanmugs
because less thanone
4. Which product has unit elastic demand according to it’s elasticity of demand coefficient?
Batmanflashlightscauseitswant
5. Explain why store owners will likely not put Vintage Star Wars action figures on sale for $5.
Becausetheywillloosemoney initialpricecostsmore
6. Assume that one of the store owners lowered the price of Phineas and Ferb t-shirts to $16. Would this most likely
increase or decrease the owner’s total revenue? Explain.
totalrevenuewouldgoupbecausethepriceisgoingdown
Part 2: Article Analysis- Read the excerpt from the 2018 article about a football stadium and complete the following.
“When the Atlanta Falcons announced the food prices at their new $1.5 billion stadium -- $2 hot dogs and sodas, $3
nachos... -- fans loved it….. The Falcons owner had made a calculated bet that what the organization lost in price
markup, it would recoup in volume -- fans would come earlier, stay longer and buy enough food to make up the
difference. About 6,000 more fans per game entered the stadium earlier than they did in 2016, and in general, the
venue sold as much food by the end of the first quarter of Falcons games as it did in full games in 2016. [Fans] also
bought more food -- sales were up 53 percent -- and each fan spent, on average, 16 percent more on concessions
(food and drinks). Atlanta’s pricing is a dramatic departure from standard prices in NFL stadiums. At $2, hot dogs at
Falcons home games cost less than half the league average $5, according to the 2016 Team Marketing Report.”
7. Explain why the success of the pricing strategy depended heavily on the elasticity of demand of the food and
drinks sold in the stadium.
8. If the price of food and drinks decreased by more than 53% and “sales were up 53 percent,” is the demand for
concessions in the stadium relatively inelastic, relatively elastic, or unit elastic? Explain.
9. Assume that the stadium owner decided to allow unaffiliated vendors to sell nachos inside the stadium. Would the
demand for nachos become more inelastic or more elastic? Explain your reasoning.
Video Help: https://youtu.be/nAT_shQGlIk ©Copyright Jacob Clifford 2021. Annual license required
Do not use unless you have purchased a license
