Changes

Read, and reread, the lecture.  Complete the homework assignments through the level in which you choose to enrol in this course:

Read, and reread, the lecture.  Complete the homework assignments through the level in which you choose to enrol in this course:

Introductory:  1. In a free market, the price and quantity at which goods are sold are where __________ equals ___________.

===Introductory===

 

1. In a free market, the price and quantity at which goods are sold are where __________ equals ___________.

2. Suppose the price demand curve is P = $20 - Q, where P is price and Q is quantity.  Also suppose the price supply curve is P = $4 + Q.  At what price and quantity will the good be sold?

2. Suppose the price demand curve is P = $20 - Q, where P is price and Q is quantity.  Also suppose the price supply curve is P = $4 + Q.  At what price and quantity will the good be sold?

Intermediate: 3. Draw the supply and demand for air.  In addition, draw the supply and demand for a good that costs $10000000000000000000000000 trillion dollars.  

===Intermediate===

 

3. Draw the supply and demand for air.  In addition, draw the supply and demand for a good that costs $10000000000000000000000000 trillion dollars.  

4. Suppose 1000 persons in a town each have the following weekly demands for gas, and the gas stations have the following weekly supplies:

4. Suppose 1000 persons in a town each have the following weekly demands for gas, and the gas stations have the following weekly supplies:

6. Suppose you went to see the opening of your favorite new movie, but it is sold out.  However, there are four independent scalpers are (illegally) reselling their tickets outside.  Four strangers are each willing to pay the scalpers at most $15, $10, $9 and $8 for a ticket.  The scalpers are initially willing to sell each of their tickets for at least $7, $8, $9, and $12.  The eight of you get together and bargain, and then tickets are sold at a common price.  What is the price and how many tickets sell at that price?  Should scalping be illegal in New Jersey?

6. Suppose you went to see the opening of your favorite new movie, but it is sold out.  However, there are four independent scalpers are (illegally) reselling their tickets outside.  Four strangers are each willing to pay the scalpers at most $15, $10, $9 and $8 for a ticket.  The scalpers are initially willing to sell each of their tickets for at least $7, $8, $9, and $12.  The eight of you get together and bargain, and then tickets are sold at a common price.  What is the price and how many tickets sell at that price?  Should scalping be illegal in New Jersey?

Honors:  Write an essay of about 300 words total on one or more of the following topics:

===Honors===

 

Write an essay of about 300 words total on one or more of the following topics:

7. Should government regulations require and monitor honest and full disclosure of information by sellers to buyers?

7. Should government regulations require and monitor honest and full disclosure of information by sellers to buyers?