PS2_ProblemSet

# PS2_ProblemSet - AEM 4150 PRICE ANALYSIS Fall 2008 Problem...

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AEM 4150 PRICE ANALYSIS Fall 2008 Problem Set #2 This assignment is due at the beginning of class on Tuesday September 23, 2008. 1. Answer all of the following short questions. (a) Which good is more price inelastic, jeans or clothes? Pork or meat? Explain why. (b) How does advertising affect demand? (c) What are some examples of goods that are price elastic? (d) True or false. Two goods are substitutes if an increase in the price of one leads to an increase in quantity demanded of the other. Why? (e) True or false. A price decrease rather than a price increase generally is more beneficial to agricultural producers. Why? (f) List the four market structures in the order from most competitive to least competitive. (g) How would you classify the U.S. soybean market and higher education market? Why? 2. The market demand and supply for Ithaca farmland is given by the following functions: Q d = 20,000 - 25P, and Q s = 15P, where: Q d is quantity demanded and Q s is quantity supplied, and P is the rental price of land per

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## This homework help was uploaded on 02/20/2009 for the course AEM 4150 taught by Professor Kaiser,h.m. during the Fall '07 term at Cornell.

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PS2_ProblemSet - AEM 4150 PRICE ANALYSIS Fall 2008 Problem...

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