Changes

1.  The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (assuming it is a free market).

1.  The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (assuming it is a free market).

:

:... '''quantity''' ... '''price''' ....  (Alexander)

2. Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity.  Also suppose the price supply curve is P = $6 + Q.  At which price and quantity will the good be sold (assuming a free market)?

2. Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity.  Also suppose the price supply curve is P = $6 + Q.  At which price and quantity will the good be sold (assuming a free market)?

: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)

: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:

(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?

(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 (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)

: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)

 

:I am in favor of the idea of lowering the prices of the obstructed view tickets because most people don’t want a seat with an obstructed view.  Those people will continue buying regular tickets. Selling the two dollar tickets would give more poor fans an opportunity to see the game and experience all the other benefits of going to a ball game, even if their view is obstructed.  There may be long lines to get the tickets, but first come, first served would be a fair way to sell them. (Steve)

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.

8.  Discuss the effect of supply and demand and the Tyndale Bible.

8.  Discuss the effect of supply and demand and the Tyndale Bible.

:

:... [There was] an increase in the demand for teh Tyndale Bible and in the profit for the printers.  Since the profit of the printers increased, they could afford to make more copies of the Tyndale Bible, as a a result, more of the laymen were able to get a copy.  This made it virtually impossible to censor the Tyndale bible and it eventually was made legal in 1573. ...  (Dermot)

9.  Relate the supply and demand curves to the basic economic concept of scarcity.  For a good that has no scarcity, such as air, are there any supply and demand curves that are meaningful?  Discuss.

9.  Relate the supply and demand curves to the basic economic concept of scarcity.  For a good that has no scarcity, such as air, are there any supply and demand curves that are meaningful?  Discuss.