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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?
How does microeconomics relate to macroeconomics? Determine whether each of the following statements is normative or positive.
Which group of economic decision makers plays the leading role in economic system? Which groups play supporting roles? In what sense are they supporting actors?
In 1990, the U.S. government imposed a 10 percent taxon certain luxuries such as pleasure boats. What does this implyabout the size of the elasticity of demand?
Why is the United States more like a pure capitalist system or more like a pure command system?
In response to an influx of illegal aliens, Congress made it federal offense to hire them. How do you think this measure affected US production frontier?
Under what conditions is it possible to increase production of one good without decreasing production of another good?
Sketch a graph to illustrate the relationship between the price of a pizza and the number of toppings for up to 5 toppings.
Suppose plant biologists develop a new type of potato that increases. Show how the new production possibilities curve would differ from the original.
Try to determine how smoothly the transition is proceeding. What problems is that nation encountering?
The United States is best described as having a mixed economic system. What are some elements of command in U.S. economy? What are some elements of tradition?