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Suppose there is an external cost associated with production of certain good. What's wrong with letting the market determine how much of good will be produced?
What are the disadvantages of the sole proprietorship form of business? Discuss how private markets might break down.
Analyze what factors does a householder consider when deciding whether to produce a good or service at home or buy it in the marketplace?
Explain how production after the Industrial Revolution differed from production under the cottage industry system.
Explain what could change the equilibrium price? What market pressure occurs when quantity demanded exceeds quantity supplied? Explain.
Who are the demanders and who are the suppliers? What are some examples of how changes in supply or demand conditions have affected this market?
If a severe frost destroys some of Florida's citrus crop, would this lead to a shift of the supply curve or a movement along the supply curve?
Analyze what kinds of changes in underlying conditions can cause supply curve to shift? Give some examples and explain the direction in which the curve shifts.
What is the law of supply? Give an example of how you have observed law of supply at work. What is relationship between the law of supply and the supply curve?
(Demand) Explain the effect of an increase in consumer income on the demand for a good.
Discuss what variables influence the demand for a normal good? Explain why a reduction in the price of a normal good does not increase the demand for that good.
What factors help determine the price elasticity of demand? What factors help determine the price elasticity of supply?
Analyze why is the price elasticity of demand for Coca-Cola greater than the price elasticity of demand for soft drinks generally?
In addition, describe what would happen to total revenue if a firm raised its price in each elasticity range identified.
Illustrate the effect of the increase in the price of gasoline in the market for SUVs. Indicate the effect of this on equilibrium price and quantity.
Illustrate the effect of the cost reducing innovations in the market for SUVs. Indicate the effect of this on equilibrium price and quantity.
Draw a supply curve for ice cream before the price increase in milk is known. Draw a supply curve for ice cream in the summer months following the increase.
Draw a demand curve for ice cream in the winter months. Draw a demand curve for ice cream in the summer months.
After reading this chapter, you have a basic understanding of how demand and supply determine. What caused the shift, and how did it affect price and quantity?
Then use a demand and supply diagram to illustrate the effect of imposing an above-equilibrium minimum wage on a particular labor market.
What do you think will happen to that market demand curve after your class graduates and your incomes rise?
Use a demand and supply graph to describe developments in the market for Mighty Morphin Power Rangers toys.
Sketch a demand and supply diagram for the unskilled labor market, and discuss the effects of a minimum wage.
Does this mean that making uninformed decisions is irrational? How do you determine how much information is the right amount?
(Rational Self-Interest) If behavior is governed by rational self-interest, why do people make charitable contributions?