Chapter 4

Chapter 4 - Chapter 4 Supply and Demand : Practice...

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Chapter 4 Supply and Demand : Practice Application 1 : Collleges receive more applications than they have spots available, must have rationing devices i.e. GPAs, SATs Application 2 : Legalizing Marijuana could result in various results and equilibrium prices; depends on the change in demand in relation to the change in supply Application 3 : Illegal music downloading, by threatening to sue illegal downloader’s the amt. of people illegally downloading almost cut in half. Application 4: TV shows during the Olympics; tv networks play reruns during major events because they know the amt. of viewers is likely to go down during that period and so advertisers will pay less to play their commercials then Application 5 : supply and demand feeds the world; it determines how much food will be sent when and where Application 6 : Minimum Wage – minimum wage results in a surplus of unskilled workers and fewer workers employed; doesn’t necessarily eliminate jobs but may eliminate the number of hours a worker is allowed to work
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This note was uploaded on 04/16/2008 for the course EB 011 taught by Professor Noell during the Spring '08 term at Westmont.

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Chapter 4 - Chapter 4 Supply and Demand : Practice...

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