Assignment 1 -
I) Watch the videos on Demand and Supply
There are 5 changes in Demand that shift the demand curve to the right or left. They are
- Change in Tastes and Preferences
- Change in Income
- Change in Population
- Change in Price Expectation
- Change in Price of related goods
There are 7 changes in Supply that shift the supply curve to the right or left. They are
- Change in Technology
- Change in Random Causes (like hurricanes, or terrorists attack, etc.)
- Change in Price Expectation
- Change in Price of other goods
- Change in Number of suppliers
- Change in Government regulations and or taxes
- Change in Cost of production
Read the following scenarios. Draw a Supply and Demand model (by hand) Label all of your curves and axis. Be sure to TITLE YOUR GRAPH. Illustrate the scenario on the graph you drew and explain what change has happened. There may be more than one answer, choose only one.
1. A severe drought for wheat in Oklahoma
2. Buyers expect the price of Orange Juice to increase in the near future
3. The Cost of grapes is going up for the wine industry
4. Income is increasing in the area where you own a restaurant
II) Watch the videos on Elasticity of Demand
Do the following problems you may use the percentage change formula or:
(Q2 - Q1/Q2+Q1) X (P2 + P1/P2 - P1)
1. If price increases from $22 to $30 and the quantity demanded decreases from 75 to 50 what is the Price Elasticity of Demand?
2. If price decreases from $120 to $115 and the quantity demanded increases from 200 to 210 what is the Price Elasticity of Demand?
The five determinants of Elasticity are:
- % of income
- Number of uses
- Luxury vs. necessity
- Passage of time
- Number of substitutes
Use only one of the five to determine if the following are elastic or inelastic. Explain using one of the five why you believe they are elastic or inelastic. Do all 8.
- A pen that you paid $25
- A cup of Starbucks gourmet coffee
- Renting a ski boat for a day
- A Box of pickling salt that costs $1.20 and you use it once a year
- A used Toyota Prius
- A Mickey Mantle baseball card
- A pair of tickets to the Superbowl
- An old photograph of your parents before you were born
III) Watch the videos on Consumer surplus
1. Fill in the following table.
|
Price
|
Q
|
Marginal Utility
|
Total Utility
|
|
$10
|
1
|
|
|
|
$9
|
2
|
|
|
|
$6
|
3
|
|
|
|
$2
|
4
|
|
|
|
$.50
|
5
|
|
|
2. If the price charged is $8 how many will be sold given the above table?
3. If the price charged is $6 what is the consumer surplus?
4. If the price charged is $10 what is the consumer surplus?
Assignment 2 -
a. Find a current article on a labor dispute, summarize and explain at least two pros and cons of both sides of the argument and;
b. Find a current article on an antitrust or anticompetitive case. Discuss what type of regulation or law is being broken and;
c. What do we export most of (in dollars) in the U.S.? What do we import (in dollars) most of in the U.S.? With what country do we TRADE most? With what country do we IMPORT from? With what country do we EXPORT to?
d. Do one of the following and carefully explain with supportive articles. (Should be at least one page typed double spaced 12 font) (be sure to CITE) (you may not use the book as a cited source.)
i. What costs more Life in Prison Without Parole or the Death Penalty?
or
ii. Why or why not should Marijuana be legalized?
or
iii. Explain both the pros and cons of the Affordable Care Act. You must have at least 2 pros and 2 cons. Include how the changes will affect you and your health care.