{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 4--Supply and Demand...Practice

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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4—Supply and Demand: Practice I. Why do Colleges use GPAs, ACTs, and SATs for Purposes of Admission? A. Colleges and universities charging students less than the equilibrium tuition for admission create a shortage of spaces at the colleges or universities. Consequently, colleges and universities have to impose some nonprice rationing device, such as GPAs, or ACT and SAT scores. II. Legalization of Marijuana B. If the purchase and sale of marijuana are legalized, the price of marijuana may rise, fall, or remain the same. The price will depend on whether the rise in the demand for marijuana is more, less than, or equal to the rise in supply of marijuana. III. Where Did You Get That Music? A. The recording industry can do, and has done, three things to reduce the amount of music piracy. 1. Raise the price of downloading music. The industry has done this by pursuing legal suits against some individuals. 2. Reduce the supply of music that can be downloaded. The industry has done this by bringing suit against companies such as Napster. 3. Reduce the demand for downloadable music. The industry has done this by running TV commercials that send the message that if you download music you are affecting everyday workers in the recording industry in a negative way. IV. Television Shows During the Olympics A. If a television network expects that demand for a time-specific slot is likely to be low, it is more likely to run a rerun than a new episode of a program. V. The Minimum Wage A. A minimum wage (above equilibrium wage) reduces the number of unskilled workers working or reduces the number of unskilled labor hours purchased by employers.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern