Download Econ-Unit3InClassWork_3Fall2016

Economics
Unit 3: In Class Work #3
Fall 2016
Please read each question carefully and show all of your work.
Consider the market for Spaghetti Sauce. Provide a graphical representation and explanation for how the
following events would affect equilibrium price and quantity for Spaghetti Sauce.
a) There is a decrease in the Price of Spaghetti.
b) You hear that the Price of Spaghetti Sauce is going to increase tomorrow.
c) Great weather produces extra tomatoes (an input) causing their price to decrease.
d) A new report is published stating Spaghetti Sauce is the leading cause of heartburn and gastrointestinal
problems.
e) There is an increase in the price of Pesto Sauce.
f) Spaghetti Sauce producers make a mistake and set the price of sauce above the equilibrium price.