Siteadmin, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
125,790
edits
Changes
Jump to navigation
Jump to search
Line 15:
Line 15: − +
Economics Homework Two Answers - Student Two (view source)
Revision as of 19:32, September 20, 2009
, 19:32, September 20, 2009improved feedback, taking a model answer
4. If there is an oversupply of over-ripe fruit, then the demand for it goes down, because there is plenty. The downward slope of the demand curve shows this to be true since the further the supply curve is to the right (or the greater the supply), the further down the demand will have gone. Since the demand has gone down for this over-ripe fruit, the grocery store is forced to lower its price to meet the supply/demand equilibrium in order to sell all the fruit before it has gone bad.
4. If there is an oversupply of over-ripe fruit, then the demand for it goes down, because there is plenty. The downward slope of the demand curve shows this to be true since the further the supply curve is to the right (or the greater the supply), the further down the demand will have gone. Since the demand has gone down for this over-ripe fruit, the grocery store is forced to lower its price to meet the supply/demand equilibrium in order to sell all the fruit before it has gone bad.
:Excellent.
:Excellent. Upon further review, this is not precisely correct because the demand for '''quantity''' never reduces in this scenario. The demand price falls but the demand quantity increases.
5. A) The New York Yankees built 600 obstructed-view seats and will make $3,000/game selling at $5/ticket. B) If New York city were to make it law that the seats only sell for $2, then the supply would not meet the demand and there would be a waiting line. I would oppose such a law because it restricts the free market and causes the suppliers to make too little money off the seats. Not everyone would be receiving a fair opportunity.
5. A) The New York Yankees built 600 obstructed-view seats and will make $3,000/game selling at $5/ticket. B) If New York city were to make it law that the seats only sell for $2, then the supply would not meet the demand and there would be a waiting line. I would oppose such a law because it restricts the free market and causes the suppliers to make too little money off the seats. Not everyone would be receiving a fair opportunity.