Problem Set for Market Supply and Demand

Problem Set for Market Supply and Demand - ,.To...

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Problem Set for Market Supply and Demand You may be tempted to skip over filling in the worksheet, but I strongly encourage you to do so.  To  learn something, it is important to think it through and come up with answers on your own and not  just pick from a list of possible answers in a multiple choice question.  Also, the worksheets serve  as a good basis for review for a test.  1. What is the general role that markets play in the economy?  2. In markets people buy and sell according to price.  What are the 3 functions that prices  have in playing out this role?  (not the 3 tasks that an economy has to perform, but the  specific functions of price) 3. Suppose that, due to an increase in a desire to be able to download books, consumers  have begun to buy more e-books, consumers have an increased desire for e-readers.  Suppose, further, that this leads to an increase in the price of e-readers.  (Assume for 
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This note was uploaded on 07/17/2011 for the course ECON 102 taught by Professor Jarv during the Summer '09 term at Rio Hondo College.

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Problem Set for Market Supply and Demand - ,.To...

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