Econ 2020-400 Worksheet 1

Econ 2020-400 Worksheet 1 - Econ 2020-400 Principles of...

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Econ 2020-400 Principles of Macroeconomics Spring 2008 Recitation Worksheet 1 1. In September 2004, an Oceanic Airlines flight from Sydney, Australia to Los Angeles crashed somewhere in the South Pacific. Briefly describe the immediate (i.e., short-run) consequences on quantity demanded, demand, quantity supplied, and supply of Oceanic Airlines flights. 2. People become more conscious about the fat content in fast-food burgers at the same time as fast-food workers’ wages decrease. In the market for fast-food burgers, (a) there is an increase in equilibrium price and a decrease in equilibrium quantity. (b) there is a decrease in equilibrium price and an increase in equilibrium quantity. (c) the equilibrium price will fall but we don’t have enough information to determine the change in equilibrium quantity. (d) the equilibrium quantity will rise but we don’t have enough information to determine the change in equilibrium price. Try to demonstrate your answer on a graph.
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This note was uploaded on 02/28/2008 for the course ECON 2020 taught by Professor Kaplan,jul during the Spring '08 term at Colorado.

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