Changes

5. Suppose the government limits the supply of Toyota cars that can be imported in 2008 to a certain quota.  What effect does this have on the supply curve, and on the equilibrium price?  Who is helped by this import quota, and who is hurt?  Be as specific as possible.

5. Suppose the government limits the supply of Toyota cars that can be imported in 2008 to a certain quota.  What effect does this have on the supply curve, and on the equilibrium price?  Who is helped by this import quota, and who is hurt?  Be as specific as possible.

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 work for a store and its owner arrives one day and tells you that wants to set new prices for every good in the store.  He declares that he is the owner, and he should be able to sell his goods and whatever price he chooses.  Will he succeed in this strategy, or is there another force outside the control of the owner that will determine the sales prices?  Explain to the owner what your opinion is of his approach.

===Honors===

===Honors===