Question

Appendix: Changes in Both Demand and Supply

Apply the correct label to each situation.

Drag each item on the left to its matching item on the right. Note that every item may not have a match, while some items may have more than one match.

Demand increases and supply decreases.

Demand and supply both decrease.

Demand and supply both increase.

Demand decreases and supply increases.

Taxis: public transit workers at a popular tourist attraction go on strike as a holiday weekend approaches.SELECT A LABELDemand increases and supply decreases.Demand and supply both decrease.Demand and supply both increase.Demand decreases and supply increases.

Pumpkins: an early frost destroyed much of the pumpkin crop. A newspaper reports zucchini is better for pie than pumpkin.SELECT A LABELDemand increases and supply decreases.Demand and supply both decrease.Demand and supply both increase.Demand decreases and supply increases.

Corn: news media run stories about people with corn allergies. The corn crop is unusually large.SELECT A LABELDemand increases and supply decreases.Demand and supply both decrease.Demand and supply both increase.Demand decreases and supply increases.

Gasoline: a new housing development goes up. Several new gas stations are built nearby.SELECT A LABELDemand increases and supply decreases.Demand and supply both decrease.Demand and supply both increase.Demand decreases and supply increases.

Answer 1

Taxis: Demand increases and supply decreases
(As workers go on strike, supply of taxis decreases and due to holiday weekend, demand increases)

Pumpkins: Demand and supply both decrease.
(Due to destruction of crop, supply decreases, and due to better report of zucchini, demand decreases)

Corn: Demand decreases and supply increases.
(Due to allergies, demand decreases and due to large crop, supply increases)

Gasoline: Demand and supply both increase.
(Due to new housing development and new stations, supply and demand increase)