Changes

Read, and reread, the lecture.  Complete the homework assignments through the level in which you choose to enrol in this course:

Read, and reread, the lecture.  Complete the homework assignments through the level in which you choose to enrol in this course:

1. In a free market, the price and quantity at which goods are sold are where __________ equals ___________.

1. The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold, at least in a market free from interference or control by government.

2. Suppose the price demand curve is P = $20 - Q, where P is price and Q is quantity.  Also suppose the price supply curve is P = $4 + Q.  At what price and quantity will the good be sold?

2. Suppose the price demand curve is P = $30 - Q, where P is price and Q is quantity.  Also suppose the price supply curve is P = $6 + Q.  At what price and quantity will the good be sold?

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.

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.