macro ha1 - price = more people buy it ↑ interest rate on...

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Name: Mussa Yernur (individual work) ID: 20152379 Date: 22.09.15 Home Assignment #1 (7,14,26,33) Topic: What is Economics, the economic problem, demand and supply. Problem #1 (Problem set #1, problem#7): Answers : a) The OC of taking this trip equals to $10,600. Solution : The OC of taking the trip is the highest-valued activity that you will give up so that you can go on the trip. In taking the trip, you will deny from your summer job, also you have to consider consumption of the trip itself, of film and videotape, and of food (6000+3000+200+1400). Problem #2 (Problem set #1, problem#14): Answers: a) negative b) decreases c)
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Unformatted text preview: price = more people buy it, ↑ interest rate on computers = ↑ cost d) (10-18)/(5-2)=-4 e) (0-12)/(5-4)= -12 Problem #3 (Problem set #1, problem#33): Answers : a) The rise in the price of gasoline does not change the demand for gasoline. The demand for gasoline changes only when some other relevant factor other than the price of the good changes. b) The rise in the price of gasoline decreases the quantity of gasoline demanded. A rise in the price of a good or a service decreases the quantity of that good or service demanded Problem #4 (Problem set #1, problem#26): Answers : a) b) c) d)...
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