Changes

Read the lecture, and reread any section that you did not fully understand.  Complete the homework assignments through the level in which you choose to participate in this course.  You can post your answers for prompt grading here:

Read the lecture, and reread any section that you did not fully understand.  Complete the homework assignments through the level in which you choose to participate in this course.  You can post your answers for prompt grading here:

http://www.conservapedia.com/Economics_Homework , or hand them in next class.

http://www.conservapedia.com/Economics_Homework , or hand them in next class.  These questions are for a "free market" (when government does not control the prices and quantities).

1.  Fill in the blanks: 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.  Fill in the blanks in the following sentence: The supply and demand for a good determine both the _________ and ___________ at which the good is sold.

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?

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.

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.

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.

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.

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 "obstructed view" bleacher seats would not be able to see all of the field because stadium walls or poles or the angle would block part of their view.  Before the Yankees decided how many of these seats to build and sell, they asked an expert economist for his advice.  He studied the "supply and demand" in the market, and developed this table:

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 "obstructed view" bleacher seats would not be able to see all of the field because stadium walls or poles or other fans would block part of their view.  An economist studied the "supply and demand" in the market, and developed this table:

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