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Economics Homework Two - Model (view source)
Revision as of 20:09, September 20, 2009
, 20:09, September 20, 2009online model answers complete, still needs model answers from paper
:No one wants to buy rotten fruit. A grocery store reduces the price of their fruit when they have an oversupply. As a result, people buy their fruit faster so they don’t rot and go to waste. The result is that due to the downward slope of the demand curve the fruit will sell faster. (James)
:No one wants to buy rotten fruit. A grocery store reduces the price of their fruit when they have an oversupply. As a result, people buy their fruit faster so they don’t rot and go to waste. The result is that due to the downward slope of the demand curve the fruit will sell faster. (James)
:A lowered price creates a higher demand. More people are willing to pay $0.99 a pound for grapes than are willing to pay $1.50 a pound. So more people begin buying the grapes, which causes the supply to go down, thereby solving the grocery stores problem of an oversupply of fruit. (Michelle)
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:
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:
<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 wait in line 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 wait in line in order to buy them? Would you oppose or support such a law, and why?
:
:Part B: Yes, the tickets will sell out unless you have more than 1000 seats. Yes, you will have to wait in line because demand exceeds supply. I would oppose such a law because it doesn’t go along with the free market. (Mark)
6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.
6. "Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.
:Money is a measure of worth. Your time has value, both in use, and in exchange. Why? Because while you are, lets say, stuck in traffic on the way to a class, you could have been finishing homework, which have freed up time to do more work, or given you time to use at a job. So that time had value in use for things you could have been doing. Time is needed to do anything that makes money. (Michelle)
:The phrase “Time Is Money” was recited by Benjamin Franklin in 1748. Ever since it has been a popular concept that Americans use and hear daily. This statement refers to wasted time as wasted money. If one sits around doing nothing when he could be out in the world making money he is wasting his time which leads to a result of wasted money. As Benjamin Franklin says, “He that can earn ten shillings a day by his labor, and goes abroad, or sits idle, one half of that day, though he spends but sixpence during his diversion or idleness, ought not to reckon that the only expense; he has really spent, or rather thrown away, five shillings. Remember, Time Is Money." (Amanda)
:The phrase “Time Is Money” was recited by Benjamin Franklin in 1748. Ever since it has been a popular concept that Americans use and hear daily. This statement refers to wasted time as wasted money. If one sits around doing nothing when he could be out in the world making money he is wasting his time which leads to a result of wasted money. As Benjamin Franklin says, “He that can earn ten shillings a day by his labor, and goes abroad, or sits idle, one half of that day, though he spends but sixpence during his diversion or idleness, ought not to reckon that the only expense; he has really spent, or rather thrown away, five shillings. Remember, Time Is Money." (Amanda)