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Economics Homework Two Answers - Student Ten (view source)
Revision as of 15:55, September 14, 2009
, 15:55, September 14, 2009no edit summary
'''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.
'''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.
'''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.
A. 300; $7.00/ticket
'''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:
Quantity of "Obstructed-View" Tickets Demand Price/Ticket Supply Price/Ticket
300 $10 $3
600 $5 $5
900 $3 $7
1000 $2 $9
(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?
(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 wait in line in order to buy them? Would you oppose or support such a law, and why?'''
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".
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".