Changes

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

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

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

1.  The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (in a free market without interference).

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?

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.

4. Why do grocery stores lower the price of their fruit (such as grapes) when they have too many of that fruit and they are on the verge of rotting?  Explain by citing the downward slope of a demand curve.

4. Why do grocery stores lower the price of their fruit (such as grapes) when they have too many of that fruit and they are on the verge of rotting?  Explain by citing the downward slope of a demand curve, and describe what happens to this fruit after the grocery store lowers its price.

5. When the New York Yankees built their new $1.5 billion ballpark, they had to make 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 something blocks part of their view.  Here is what the supply and demand information is for those obstructed-view seats:

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 something blocks part of their view.  Here is what the supply and demand are for those obstructed-view seats:

{| class="wikitable"

{| class="wikitable"

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(A) How many "obstructed view" bleacher seats did the New York Yankees build, based on the above data?

(A) How many "obstructed view" bleacher seats did the New York Yankees build, based on the above data, and how much does the team make from sales of these tickets at each game?

<br>(B) Suppose the City of New York passed a law for a maximum price (price control) of $2 per "obstructed view" bleacher ticket.  Will the obstructed-view seats sell out under this law, and will people probably have to stand in long lines in order to buy them?  Would you oppose or support such a law, and why?

<br>(B) Suppose the City of New York passed a law for a maximum price (a "price control") of $2 per "obstructed view" bleacher ticket.  Will the obstructed-view seats sell out under this law, and will people have to stand in long lines in order to buy them?  Would you oppose or support such a law, and why?

6.  "Time is money."  Explain.

6.  "Time is money."  Explain.

7. Suppose you work for a store and its owner arrives one day and tells you that wants to set new prices for every good in the store.  He declares that he is the owner, and he should be able to sell his goods and whatever price he chooses.  Will he succeed in this strategy, or is there another force outside the control of the owner that will determine the sales prices?  Explain to the owner what your opinion is of his approach.

7. Suppose you work for a store and its owner arrives one day and tells you that wants to set new prices for every good in the store.  He declares that he is the owner, and he should be able to sell his goods and whatever price he chooses.  Will he succeed in this strategy, or is there another force outside the control of the owner that will determine the sales prices?  Explain to the owner what your opinion is of his approach, using basic concepts in this lecture.

===Honors===

===Honors===

9.  Is there a supply and demand curve for homeschooling, or homeschooling courses?  Discuss.

9.  Is there a supply and demand curve for homeschooling, or homeschooling courses?  Discuss.

10.  Explain your opinion of the Democratic health plans proposed in the summer of 2009.

10.  Explain your opinion of the Democratic health plans pending in Congress.

11.  How does supply and demand and the free market help someone who might be an outcast in a community?

11.  How are the forces of supply and demand and the free market helpful to someone who might otherwise be an outcast in a community?

12.  Should providers of abortion services be required to fully disclose to mothers the harm that abortion causes?

12.  Should providers of abortion services be required to fully disclose to mothers the harm that abortion causes? Discuss in the context of requiring disclosure of information by sellers of goods and services.

[[Category:Economics lectures]]

[[Category:Economics lectures]]

{{DEFAULTSORT: Economics Lecture 02}}

{{DEFAULTSORT: Economics Lecture 02}}