Activity

This activity connects supply and demand to the real world. Students will read articles that show
changes in supply or demand, or simply analyze the articles’ summaries and translate the content to the
analysis of demand, supply, quantity demanded and quantity supplied, and market equilibrium.

Real World Connections: Supply and Demand Student Worksheet

Remember that all changes are other things being equal.

1. DVD sales are sliding because more consumers are watching content digitally. (This involves two
markets.)
Article: bloomberg.com/news/articles/2015-01-06/u-s-dvd-sales-continue-to-slide-as-
digitalviewing-soars

Market What Demand Supply Curve Shift Equilibrium

changed? price and
quantity
DVDs
Digital
Content

2. Drought and demand from Arby’s creates a brisket shortage; the article also mentions the
increase in the popularity of brisket.
Article: cbsnews.com/news/brisket-shortage-has-texas-barbecue-lovers-facing-rising-costs/

Market What Demand Supply Curve shift Equilibrium

changed? price and
quantity
Brisket
3. There is an oversupply of oil from increased North American and Saudi Arabian production.
Article: businesstoday.intoday.in/story/oil-prices-brent-crude-extends-loss-on-supply-glut-
jan14/1/214565.html

Market What Demand Supply Curve Shift Equilibrium

changed? price and
quantity
Gasoline

4. New cage laws for chickens decrease the number of chickens (and therefore the number of
eggs).
Article: cbsnews.com/news/why-egg-prices-will-likely-rise-in-2015/

Market What Demand Supply Curve Shift Equilibrium

changed? price and
quantity
Eggs

5. Movie ticket prices increase.

Article: time.com/3666765/movie-theaters-ticket-prices-box-office-revenue-summer/
Market What Demand Supply Curve shift Equilibrium
changed? price and
quantity
Movie tickets

6. Piano stores close down as fewer young people are taking up the instrument. The article also
mentions that technology has improved so that pianos last longer.

Article: lehighvalleylive.com/music/index.ssf/2015/01/piano_stores_closing_sales_plu.html

Market What Demand Supply Curve Shift Equilibrium

changed? Price and
Quantity
Pianos

2
7. Consumers become more health conscious and reduce their consumption of donuts.

Article: newsmax.com/health/Health-News/sugary-processed-foods pastries/2014/12/29/id/

615359/

Market What Demand Supply Curve Shift Equilibrium

changed? Price and
Quantity
Donuts

8. The increase in Mexican immigrants and an increase in popularity for Mexican cuisine has
resulted in greater consumption of tortilla chips.

Article: cnn.com/2015/01/21/living/feat-tortilla-chip-history-tailgating-eatocracy/
Market What Demand Supply Curve Shift Equilibrium
changed? Price and
Equilibrium
Quantity
Tortilla chips

9. As the American populations is aging, fast food consumption is falling.

Article: today.com/health/hold-fries-were-eating-less-fast-food-study-says-1C8463926
Market What Demand Supply Curve Shift Equilibrium
changed? Price and
Quantity
Fast food

10. Avocados become America’s favorite fruit.

Article: washingtonpost.com/blogs/wonkblog/wp/2015/01/22/the-sudden-rise-of-the-
avocadoamericas-new-favorite-fruit/
Market What Demand Supply Curve Shift Equilibrium
changed? Price and
Quantity
Avocados

3
 11. Hyundai’s car sales are affected by lower gas prices.
Article: autonews.com/article/20141202/RETAIL01/312029993/hyundai-falls-4-as-small-
carstumble

Market What Demand Supply Curve shift Equilibrium

changed? price and
quantity
Small cars
SUVs

12. Dry weather has decreased Ghana’s cocoa production by 22% from last year. Article:
money.cnn.com/2015/06/23/investing/chocolate-cocoa-prices-go-up/
Market What Demand Supply Curve shift Equilibrium
changed? price and
quantity
Chocolate
bars

Related links

Online course and video Q&A

Econlowdown Instructor Management Panel Login
(https://bts.stlouisfed.org/econ_ed/online_learning/)
(Use the login to access the supply and demand videos in the Video Q & A section. They can be found
under the Economic Lowdown series.)
Supply and Demand
(https://bts.stlouisfed.org/supply-and-demand/?p=yes)

Lesson
Why Do Gasoline Prices React to Things That Have Not Happened?
(https://www.stlouisfed.org/legacy_assets/education_resources/assets/lesson_plans/07ITV_ShiftingCur
ves.pdf)

Podcasts
Demand
(https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-6-demand)

4
Supply
(https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-7-supply)
Market Equilibrium
(https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-8-
marketequilibrium)

Videos
Demand
(https://www.stlouisfed.org/education/economic-lowdown-video-series/episode-2-demand)
Supply
(https://www.stlouisfed.org/education/economic-lowdown-video-series/episode-1-supply)
Market Equilibrium
(https://www.stlouisfed.org/education/economic-lowdown-video-series/episode-3-equilibrium)

Whiteboard slides
Supply and Demand
(https://www.stlouisfed.org/education/supply-and-demand)