1. Supply & Demand Shifts Part 3: Topic Completion

2. Shifts in Demand (TIPSE) Shifts in Supply (TIN) S & D Shifts

3. TIPSE TIN Determinants of DemandDeterminants of Supply Tastes, income, population Price substitutes/complements, expectations Technology, input prices number-sellers Change in Demand (NEW Demand Curve) Change in Supply (NEW Supply Curve)

4. Price Qty Large SUV’s D1D1 S1S1 ---------- ------------- $40,000 40K E1E1 D2D2 -------------- ---------- P2P2 Q2Q2 E2E2 TIPSE ↓ Complement Price ↑ ↓ Demand ↓ (shifts left) Economic Event: Price of gasoline ↑ $2.5 to $5.0 per gallon End Result: 1) Decrease in Demand (also called decrease in demand) & 2) Decrease in Quantity Supplied (move along supply curve)

5. Practice Test

6. Price Qty D1D1 S1S1 ------------- P1 Q1 E1E1 D2D2 --------------

7. D1D1 S1S1 $10 00 E1E1. Shortage of Supply Price Ceiling $9 00 Market for T-Shirts Q1Q1 Government Price Controls ---------------- --------------- QSQS QDQD End Result: Quantity Demanded Rises Quantity Supplied Falls Shortage of Supply

8. Automation & Jobs http://www.cbsnews.com/video/watch/?id=50138922n

9. Echo Boomers They make up nearly one-third of the U.S. population & spend $170 billion a year of their/ parents' money…. “Helicopter Parents”