DEMAND AND SUPPLY WORKSHEET NAME:________________________ DEMAND - Relationship between the price of a product and the quantity a buyer needs or wants. Law of Demand (def) - _________________________________________________________________ Graphing Demand   Price Quantity Demanded (Qd) Income increases (Qd) increases Taste of People change (Qd) decreases .50 .60 .70 .80 .90 1.00 100 90 80 70 60 50 160 150 140 130 120 110 90 80 70 60 50 40 Label the x and y axis Using a different colour, plot each demand curve using the selection of prices provided SUPPLY - Relationship between the price of a good or service and the quantity offered for sale. Law of Supply (def) - __________________________________________________________________ Graphing Supply and Demand Price .50 .60 .70 .80 .90 1.00   Quantity Supplied (Qs) 60 80 100 120 140 160 Quantity Demanded (Qd) 100 90 80 70 60 50 Label the x and y axis Using a different colour, plot the supply curve, then plot the demand curve for the given prices DEMAND AND SUPPLY WORKSHEET NAME:________________________ What happens to the Quantity supplied if the price increases? _________________________________ What is it called when the Qd=Qs? _______________________________________________________ The Interaction of Supply and Demand Price of a T-shirt $20 $24 $28 $32 $36  Label the x and y axis and Quantity Demanded Quantity Supplied 16 0 12 4 8 8 4 12 0 16 plot the supply and demand curves using different colours What is the equilibrium price? _____________ What is the equilibrium quantity? ____________ Price above equilibrium If a seller raises the price to $32, the seller wants to sell 12 t-shirts, but buyers are only willing to purchase 4. Therefore there is a surplus of _____ t-shirts and the seller will have to lower their price to persuade consumers to buy. Show this surplus at $32 on your graph. Price Below Equilibrium When the price is set lower than $28, the quantity demanded will exceed the quantity supplied and a shortage will occur. For example if the price is set at $24, then 12 t-shirts will be demanded, but the seller will supply only 4, creating a shortage of ____ t-shirts. In this situation, the seller will then raise the price since the shirts are selling so quickly. Show this shortage at $24 on your graph. EVALUATION APPLICATION All parts components completed, neatly presented, demonstrating understanding of Demand and Supply. 1 2 3 4 5 6 7 8 9 10 DEMAND AND SUPPLY WORKSHEET NAME:________________________