AP Shortages & Surpluses

Match

Match the following scenarios to the correct outcome.

• A product gets popular?

• A factory burns down?

• Input costs decrease?

• Consumers get poor?

Demand Increases

Supply Decreases

Supply Increases

Demand Decreases

• Demand Increases

• Supply Decreases

• Supply Increases

• Demand Decreases

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​QD > QS

​QD < QS

Multiple Choice

Market: Milk

Equilibrium Price: $2

Gov't sets min price of $5

Result?

• Shortage

• Surplus

Draw

Market: Milk

Equilibrium Price: $2

Gov't sets min price of $5

Result?

Multiple Choice

Market: Leather Purses

Equilibrium Price: $200

Gov't sets min price of $300

Result?

• Shortage

• Surplus

Multiple Choice

Market: Iphones

Equilibrium Price: $1,000

Gov't sets max price of $200

Result?

• Shortage

• Surplus

Draw

Market: Iphones

Equilibrium Price: $1,000

Gov't sets max price of $200

Result?