2021-SS242-Grid Lego - Grid_Lego PDF

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SUPPLY AND DEMAND EXERCISE –LEGO BRICKS The following questions apply to the current market for Lego Brand building bricks in New York. EVENT

1. The number of children in New York City increases drastically 2. Doctors find that children who play with Lego bricks do better in school. 3. There is an expectation by consumers of a major price increase on Lego building bricks to come next month. 4. Costs of advertising Lego building bricks in the newspapers and on television goes down. 5.. The toymakers union achieves a pay increase for their members. 6. A recession hits the United States and incomes fall drastically. 7. The price of plastic ‘windows and doors,’ a complement to Lego bricks goes down. 8. The price of ‘Megablocks’ brand building bricks goes up. 9. Rising oil prices increase the cost of plastic, the major ingredient in the production of Lego brand building bricks. 10. Rents on toy warehouse space go down. 11. Lego wins the ‘Toy of the Year’ Award 12. A competing company” LockBlocks” goes out of business. 13. Family income in New York goes up

What happens to equilibrium price? (use arrows)

What happens to equilibrium quantity? (use arrows)

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Which curve shifts? (D or S) D

Which way?

N/A

S 14. The government mandates extra safety devices in Lego company factories. D 15. “Megablocks” introduces a new improved assortment of bricks. 16. AFOLs (Adult Fans of Lego) start D buying Lego building bricks. 17. A new ‘plastic-molding” machine is S created to manufacture bricks. Name: Date: Feb 2nd

Revised Sept 2011

FILE: ECONOMICS:GRID-LEGO...