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| | Read and, if necessary, reread the above lecture. Complete the homework assignments through the level in which you choose to enroll in this course: | | Read and, if necessary, reread the above lecture. Complete the homework assignments through the level in which you choose to enroll in this course: |
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| | 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. | | 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. |
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| | 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. 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. |
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| − | 3. Give examples of a complement and a substitute for a hamburger lunch. | + | 3. Give examples of a complement and a substitute for a hamburger for lunch. |
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| − | 4. A nearly perfectly elastic demand curve is nearly ________; a nearly perfectly inelastic demand curve is nearly __________. | + | 4. A nearly perfectly elastic demand curve is nearly ________ in shape; a nearly perfectly inelastic demand curve is nearly __________ in shape. |
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| − | 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> | + | 5. |
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| | 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? |
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| | ===Honors=== | | ===Honors=== |
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| − | <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.
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| − | 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.
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| | Write an essay of about 200 words total on one or more of the following topics: | | Write an essay of about 200 words total on one or more of the following topics: |