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| | 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: |
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| − | 1. The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold, at least in a market free from interference or control by government. | + | 1. The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (in a market free from interference or control by government). |
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| | 2. Suppose the price demand curve is P = $30 - Q, where P is price and Q is quantity. Also suppose the price supply curve is P = $6 + Q. At what price and quantity will the good be sold? | | 2. Suppose the price demand curve is P = $30 - Q, where P is price and Q is quantity. Also suppose the price supply curve is P = $6 + Q. At what price and quantity will the good be sold? |
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| | 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. |
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| − | 4. Why do grocery stores lower the price of their fruit (such as grapes) when they have too many of that fruit and they are on the verge of rotting? Explain based by citing the downward slope of a demand curve. | + | 4. Why do grocery stores lower the price of their fruit (such as grapes) when they have too many of that fruit and they are on the verge of rotting? Explain by citing the downward slope of a demand curve. |
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| | 5. Suppose there is the following supply and demand for Yankees baseball tickets for opening day: | | 5. Suppose there is the following supply and demand for Yankees baseball tickets for opening day: |