1. Analyze the market for pizzas.
   1. Graph the demand curve in the market for pizzas based on the following information:

   Price	Quantity Demanded
   $4	135
   5	104
   6	81
   7	68
   8	53
   9	39

   1. Graph the supply curve in the market for pizzas based on the following information:

   Price	Quantity Supplied
   $4	26
   5	53
   6	81
   7	98
   8	110
   9	121

   1. Now putting the curves on the same graph, what is the equilibrium price and quantity? If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?
2. Explain each of the following statements using supply-and-demand diagrams
   1. When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.
   2. When the weather turns warm in New England every summer, the prices of hotel rooms in the Caribbean resorts plummet.
   3. When a war breaks out in the Middle East, the price of gasoline rises, while the price of a used Cadillac falls.
3. Suppose that the price of basketball tickets at ISU is determined by market forces. Currently, the demand and supply schedules are as follows:

Price	Quantity Demanded	Quantity Supplied
$4	10,000	8,000
8	8,000	8,000
12	6,000	8,000
16	4,000	8,000
20	2,000	8,000

1. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true?
2. What are the equilibrium price and quantity of tickets?
3. Suppose ISU plans to increase total enrollment next year by 5,000 students. The additional students will have the following demand schedule:

Price	Quantity Demanded
$4	4,000
8	3,000
12	2,000
16	1,000
20	0

1. Now add the old demand schedule and the demand schedule for the new students to calculate the new demand schedule. Graph this new demand curve. What will be the new equilibrium price and quantity?
1. Consider the market for minivans. For each of the events listed here, identify whether demand or supply will be affected and whether it will increase or decrease. Also, graph the situation and show whether price and quantity will increase, decrease or stay the same.
   1. People decide to have more children.
   2. A strike by steel workers raises steel prices.
   3. Engineers develop new automated machinery for the production of minivans.
   4. The price of station wagons rises.
   5. A stock-market crash lowers peoples wealth.