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Home+work+2 (1) - 4 . Midwest has unusually good weather...

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Problem Set 2: Home Work Assignment READ ALL INSTRUCTIONS CAREFULLY! All work must be submitted by the due date. You will receive NO credit if homework is turned in after the deadline. Full credit will be given for accurate, complete and neat work. Please save your work as a word document or type right into the assignment window in oncourse. Please rewrite the question and provide the answer below it. Points will be deducted if instructions are not followed. Read Chapter 3 of the text book and answer the following questions: All questions worth 2 point each. 1. What is the difference between change in quantity demanded and change in demand of broccoli? 2. If broccoli and green beans are substitutes, what will be the effect of the decrease in the price of green beans on the equilibrium price and quantity for broccoli? Explain your answer. 3. What are some of the factors that influence supply of a product (list at least 4)?
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Unformatted text preview: 4 . Midwest has unusually good weather this year. What will be the effect on the market price and the amount of corn that is bought and sold respectively? 5. What will occur in the market for cars if rising energy prices increase the cost of producing steel? Explain your answer. 6. Which of the following will NOT lead to an increase in the equilibrium price of milkshake? a.) an increase in income b.) an increase in price of milk (an input for making milkshake) c.) a study which shows that drinking milkshake decreases risk of heart disease d,) a decrease in income 7. Define price ceilings and price floors? Give an example of each. 8. What is the law of demand? 9. If broccoli and cheese are complements, what will be the effect of the decrease in the price of cheese on the equilibrium price and quantity for broccoli? Explain your answer. 10. If rent controls are counterproductive, why do cities impose them?...
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This note was uploaded on 11/23/2010 for the course ECON 101 taught by Professor Staff during the Spring '08 term at IUPUI.

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Home+work+2 (1) - 4 . Midwest has unusually good weather...

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