Answer the following questions as it relates to the listed non-price factor(s) of demand and supply (drawing a graph with the necessary changes in
demand and supply will help you answer the questions).

a. An individual gets laid off from his job.

1. This factor is a change in .

2. Which way will the graph shift? .

3. This change will result in a(n) in price and a(n)

in quantity.

b. A new invention increases production.

1. This factor is a change in .

2. Which way will the graph shift? .

3. This change will result in a(n) in price and a(n)

in quantity.

c. There is an increase in price of a substitute good for orange juice and
a frost in Florida destroyed a large amount of the citrus product.

1. This will cause a(n) in demand and a(n)

in supply.

2. The new equilibrium price will .

3. The old equilibrium price will now be a .

(2 pts.) 7. Name the two things that will happen when price is below the equilibrium
price.