| Line 144: |
Line 144: |
| | <need to update these questions> | | <need to update these questions> |
| | | | |
| − | 1. Give an example of a good that has high price elasticity, meaning that that a small increase in price causes a big decrease in demand. | + | 1. Give an example of a good that has high price elasticity, meaning that a small decrease in price causes a big increase in demand. |
| | | | |
| | + | 2. Donald Trump makes money by "selling" the service of gambling. Donald Trump can keep increasing and increasing his price for the gambling (the losses by the players), and the addicted gamblers just keep on paying to play. Does this describe an "elastic" or "inelastic" service? Explain. |
| | | | |
| − | 2. The demand for some goods decreases more when the good increases in price, compared to the decrease in demand for other goods that have a price increase. What term is used to describe how much the demand decreases when the price increases?
| + | 3. Give examples of a complement and a substitute for a hamburger lunch. |
| | | | |
| − | 2. Donald Trump is the seller of an inelastic service: gambling. That means Donald Trump can keep increasing and increasing his price for the gambling (his chances of winning at the expense of the players), and the gamblers _____________.
| + | 4. A nearly perfectly elastic demand curve is nearly ________; a nearly perfectly inelastic demand curve is nearly __________. |
| − | | |
| − | 3. Give examples of a complement and a substitute for breakfast eggs.
| |
| − | | |
| − | 4. Describe a perfectly elastic demand curve, and a perfectly inelastic one. | |
| − | | |
| − | 5. If the demand curve is a straight line having negative slope (i.e., increasing quantity as price decreases), then draw or describe the shape of its curve for price elasticity of demand:
| |
| − | | |
| − | 6. Describe what a negative income elasticity of demand means. Give an example of a good or service that might have a negative income elasticity of demand.
| |
| | | | |
| | + | 5. If the demand curve is a straight line having negative slope (i.e., increasing quantity as price decreases), then draw or describe the shape of its curve for price elasticity of demand: <need new question 5> |
| | | | |
| | 6. What is your view of the minimum wage? Should it be increased? | | 6. What is your view of the minimum wage? Should it be increased? |
| Line 165: |
Line 159: |
| | | | |
| | ===Honors=== | | ===Honors=== |
| | + | |
| | + | <change:>6. Describe what a negative income elasticity of demand means. Give an example of a good or service that might have a negative income elasticity of demand. |
| | + | |
| | | | |
| | 7. Suppose the demand for a special type of colored corn is inelastic. Suppose there was a disease that uniformly killed 20% of all the cornstalks, but did not affect demand at all (i.e., the public was not scared by the disease). Explain if corn farmers are better or worse off due to the disease, and why. | | 7. Suppose the demand for a special type of colored corn is inelastic. Suppose there was a disease that uniformly killed 20% of all the cornstalks, but did not affect demand at all (i.e., the public was not scared by the disease). Explain if corn farmers are better or worse off due to the disease, and why. |