Economics Homework Two Answers - Student Ten - Revision history

Taj: categorizing

2010-01-29T17:46:08Z

categorizing

Aschlafly: good work

2009-09-20T16:47:48Z

good work

AnnaM at 19:46, September 14, 2009

2009-09-14T19:46:53Z

AnnaM at 19:46, September 14, 2009

2009-09-14T19:46:27Z

AnnaM at 19:24, September 14, 2009

2009-09-14T19:24:48Z

AnnaM at 19:24, September 14, 2009

2009-09-14T19:24:23Z

AnnaM at 15:59, September 14, 2009

2009-09-14T15:59:35Z

AnnaM at 15:58, September 14, 2009

2009-09-14T15:58:44Z

AnnaM at 15:55, September 14, 2009

2009-09-14T15:55:56Z

AnnaM at 15:53, September 14, 2009

2009-09-14T15:53:42Z

← Older revision		Revision as of 17:46, January 29, 2010
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	[[[[''''''Aran M.'''''']]]]		[[[[''''''Aran M.'''''']]]]
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		+	[[Category: Economics Homework Two Answers]]

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 '''1. The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (assuming it is a free market).'''   Price and quantity
 '''2. Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity. Also suppose the price supply curve is P = $6 + Q. At which price and quantity will the good be sold (assuming a free market)?'''   P=24 and Q=12
 '''3. When the supply of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil? Explain. When the demand for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil? Explain.'''   Price goes down. Example: if the US drilled for oil the price would probably drop world wide.
 '''4. Why do grocery stores lower the price of their fruit (such as grapes) when they have an oversupply of ripened fruit? Explain by citing the downward slope of a demand curve, and describe what happens to this fruit after the grocery store lowers its price.'''   Grapes are perishable and the value goes down the older they get, so a store needs to live by "carpe diem".  If the price is lowered the intercept point for price and quantity is moved to the right, so more grapes will sell, according to the graph.
 '''5. When the New York Yankees built their new $1.5 billion ballpark, they made a decision about how many "obstructed view" bleacher seats to include. Due to the design of this new stadium, people sitting in these bleacher seats could not see all of the field because part of the stadium structure blocks part of their view. Here is what the supply and demand are for those obstructed-view seats:
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 B. Yes; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium doesn't go out of business. Remember "there’s no such thing as a free lunch".
 '''6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.''' you can lead a horse to water but you can’t make it drink".  In a truly free market, without government control, people will only buy what they want, regardless of who or how rich a person is that tries to force them otherwise. The government by threat of jail is really the only one who can force people to buy, but this would not be a free market.
-'''7. Explain why waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market. (Hint: the reason is related to the effect of price controls on the supply of a good or service.) ''' if doctors are making hardly any profit, they will do less surgery's because it isn’t worth there time.  This will cause a shortage and the waiting line will get longer.  The medical suppliers will start limiting their services just like the bleachers of the obstructed view boxes at Yankee stadium.
+:Excellent, could use as a model answer.
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+[[[[''''''Aran M.'''''']]]]

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 '''6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.''' you can lead a horse to water but you can’t make it drink".  In a truly free market, without government control, people will only buy what they want, regardless of who or how rich a person is that tries to force them otherwise. The government by threat of jail is really the only one who can force people to buy, but this would not be a free market.
 '''7. Explain why waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market. (Hint: the reason is related to the effect of price controls on the supply of a good or service.) ''' if doctors are making hardly any profit, they will do less surgery's because it isn’t worth there time.  This will cause a shortage and the waiting line will get longer.  The medical suppliers will start limiting their services just like the bleachers of the obstructed view boxes at Yankee stadium.
 [[[[
 ''''''Aran M.'''''']]]]

← Older revision		Revision as of 19:46, September 14, 2009
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	'''6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.''' you can lead a horse to water but you can’t make it drink". In a truly free market, without government control, people will only buy what they want, regardless of who or how rich a person is that tries to force them otherwise. The government by threat of jail is really the only one who can force people to buy, but this would not be a free market.		'''6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.''' you can lead a horse to water but you can’t make it drink". In a truly free market, without government control, people will only buy what they want, regardless of who or how rich a person is that tries to force them otherwise. The government by threat of jail is really the only one who can force people to buy, but this would not be a free market.
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		+	'''7. Explain why waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market. (Hint: the reason is related to the effect of price controls on the supply of a good or service.) ''' if doctors are making hardly any profit, they will do less surgery's because it isn’t worth there time. This will cause a shortage and the waiting line will get longer. The medical suppliers will start limiting their services just like the bleachers of the obstructed view boxes at Yankee stadium.
		+	[[[[
		+	''''''Aran M.'''''']]]]

← Older revision		Revision as of 19:24, September 14, 2009
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	B. Yes; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium doesn't go out of business. Remember "there’s no such thing as a free lunch".		B. Yes; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium doesn't go out of business. Remember "there’s no such thing as a free lunch".

−	'''6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.''' you ~~can’t~~ lead a horse to water but you can’t make it drink". In a truly free market, without government control, people will only buy what they want, regardless of who or how rich a person is that tries to force them otherwise. The government by threat of jail is really the only one who can force people to buy, but this would not be a free market.	+	'''6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.''' you can lead a horse to water but you can’t make it drink". In a truly free market, without government control, people will only buy what they want, regardless of who or how rich a person is that tries to force them otherwise. The government by threat of jail is really the only one who can force people to buy, but this would not be a free market.

← Older revision		Revision as of 15:59, September 14, 2009
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	B. Yes; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium doesn't go out of business. Remember "there’s no such thing as a free lunch".		B. Yes; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium doesn't go out of business. Remember "there’s no such thing as a free lunch".
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		+	'''6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.'''

← Older revision		Revision as of 15:58, September 14, 2009
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	A. 300; $7.00/ticket		A. 300; $7.00/ticket

−	B. ~~yes~~; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium doesn't go out of business. Remember "there’s no such thing as a free lunch".	+	B. Yes; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium doesn't go out of business. Remember "there’s no such thing as a free lunch".

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-.  Price and quantity
+'''1. The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (assuming it is a free market).'''   Price and quantity
-.  P=24 and Q=12
+'''2. Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity. Also suppose the price supply curve is P = $6 + Q. At which price and quantity will the good be sold (assuming a free market)?'''   P=24 and Q=12
-.  Price goes down. Example: if the US drilled for oil the price would probably drop world wide.
+'''3. When the supply of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil? Explain. When the demand for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil? Explain.'''   Price goes down. Example: if the US drilled for oil the price would probably drop world wide.
-.  Grapes are perishable and the value goes down the older they get, so a store needs to live by "carpe diem".  If the price is lowered the intercept point for price and quantity is moved to the right, so more grapes will sell, according to the graph.
+  Grapes are perishable and the value goes down the older they get, so a store needs to live by "carpe diem".  If the price is lowered the intercept point for price and quantity is moved to the right, so more grapes will sell, according to the graph.
-.  A. 300; $7.00/ticket
+   A. 300; $7.00/ticket
 B. yes; yes; yes; but only if they passed a law that you must buy at lest 7 hot dogs and 5 sodas, so that the Yankee stadium dosin't go out of business. Remember "there’s no such thing as a free lunch".