PS 1 Macro courses FL 17.docx

PS 1 Macro courses FL 17.docx - ECN 150 and EC 210 Fall...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECN 150 and EC 210, Fall 2017 Whitney Wilber PROBLEM SET 1 (Supply and Demand) (15 points) 1. (Market for Washington Apples) Suppose Washington State, a top grower of Apples, experiences perfect weather conditions throughout the growing season. Illustrate graphically and explain in complete sentences the step-by-step process by which equilibrium price and equilibrium quantity change and how they change (increase/decrease). (5 points) a. Since Washington has experienced perfect weather conditions, this will increase the supply of Apples for that growing season. Due to an increase in the supply of apples, there will be a shift of the supply curve to the right. This results in an increase of the equilibrium quantity of apples supplied, and a decrease of the equilibrium price. b. 2. (Market for lumber) Assume the demand for lumber by builders suddenly rises because of a rapid growth of demand for new housing. Illustrate graphically and explain in complete sentences the step-by-step
Image of page 1

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

View Full Document Right Arrow Icon
ECN 150 and EC 210, Fall 2017
Image of page 2
Image of page 3
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