Shifts in Supply or Demand Curve Draw a correct graph, showing which curve shifted and what happened to price and quantity.

Market: Coffee Bountiful crop of Coffee Beans

Supply increases, shifts to the right Price falls, quantity increases

Market: Automobile Industry Workers in the Automobile Industry receive a pay raise.

Supply shifts to the left because of input costs rising Price increases, quantity falls

Market: Computer software Price of personal computers fall

Demand shifts to the right because of the price of a complement falls Price rises, quantity increases

Market: Pepsi Cola Price of Coca Cola rises

Demand for Pepsi increases because the price of a substitute good rises price increases, quantity increases

Market: Second Hand Clothing National Incomes Rise

Demand shifts to the left because the change in income causes a decrease in demand for an inferior good price falls, quantity falls

Market: Automobile Industry Government gives GM and Chrysler a subsidy

Supply shifts to the right because of a change in government policies price falls, quantity increases

Market: Corn Price for irrigation equipment falls

Supply increases because of a change in technology price falls, quantity increases

Market: Any normal good American’s Income falls 3 months in a row

Demand increases because incomes rising and increase in demand for normal goods price falls, quantity decreases

Market: TV Manufacturing American TV production closes its manufacturing plant

Supply shifts left because of decrease in number of producers in the market price increases, quantity falls

Market: Any Inferior Good American’s income rises 3 months is a row

Demand decreases because as incomes rise, there is a decrease in demand for inferior goods price falls, quantity falls