Supply and Demand Practice

Foot Locker closes down 400 stores nationwide. What is the likely impact on the demand/supply of athletic shoes in this scenario?

• Increase in demand

• Decrease in demand

• Increase in supply

• Decrease in supply

Sensing an economic boom, multiple Nike factories move back to the United States from overseas. Use economic analysis to determine what happens to the demand/supply of athletic shoes in this scenario.

• Demand for athletic shoes increases.

• Supply of athletic shoes increases.

• Demand for athletic shoes decreases.

• Supply of athletic shoes decreases.

Shoelace-making companies across the US decide to lower their prices. Use economic analysis to determine what happens to the demand/supply of athletic shoes in this scenario.

• Demand for athletic shoes increases.

• Supply of athletic shoes decreases.

• Demand for athletic shoes decreases.

• Supply of athletic shoes remains unchanged.

A new odor-eating shoe spray is advertised, guaranteeing to completely eliminate shoe odors forever. Use economic analysis to determine what happens to the demand/supply of athletic shoes in this scenario.

• Demand for athletic shoes increases.

• Supply of athletic shoes increases.

• Demand for athletic shoes decreases.

• Supply of athletic shoes decreases.

The price of socks, a complement to shoes, increases. Use economic analysis to determine what happens to the demand/supply of athletic shoes in this scenario.

• Demand for athletic shoes increases

• Demand for athletic shoes decreases

• Supply of athletic shoes increases

• Supply of athletic shoes decreases

Nike announces it will release the new LeBron 12’s on the day of the NBA draft. (Analyze from the consumer’s perspective right now.) Use economic analysis to determine what happens to the demand/supply of athletic shoes in this scenario.

• Demand for athletic shoes increases.

• Supply of athletic shoes increases.

• Demand for athletic shoes decreases.

• Supply of athletic shoes decreases.

The prices of leather and canvas, two materials used to make shoes, increases. Use economic analysis to determine what happens to the demand/supply of athletic shoes in this scenario.

• Demand for athletic shoes increases.

• Supply of athletic shoes decreases.

• Demand for athletic shoes remains unchanged.

• Supply of athletic shoes increases.

The government issues a tariff on all Adidas apparel coming from Asia. What is the likely impact on the market?

• Decrease in supply

• Increase in demand

• No change in the market

• Increase in supply

The price of sandals, a substitute for shoes, suddenly decreases. Analyze the change in the market.

• Demand for shoes will increase

• Demand for shoes will decrease

• Supply of shoes will increase

• Supply of shoes will decrease

A church hosts a fundraiser stating that for every pair of shoes a person buys a pair will be given to children in 3rd World countries. Analyze the change in the market.

• Supply increases

• Demand increases

• Supply decreases

• Demand decreases