Homework 2 Solution

Homework 2 Solution - Homework #2 Microeconomics Fall, 2011...

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Homework #2 Microeconomics Fall, 2011 Due: Monday, September 19 th . Directions: I prefer that you print the following document and answer the following questions using the spaces provided. Please be neat and clear if you are asked to draw graphs. Label all graphs completely and show initial and ending equilibrium P and Q lines in all cases . 1. A recent study indicated that “stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana.” 1. On the basis of this information, are alcohol and marijuana substitutes or complements? Complements 2. Suppose that campus authorities reduce the supply of alcohol on campus. Use demand and supply graphs to illustrate the impact on the campus alcohol and marijuana mar 2. According to an article in the Wall Street Journal, in early 2009, the prices of airline tickets in the United States had dropped by 40 percent at the same time that U.S. airlines had reduced the number of planes they had in service, thereby reducing the supply of airline seats. Use a demand and supply graph to illustrate how it is possible for the supply of airline seats available at every price to have declined at the
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This note was uploaded on 10/09/2011 for the course ECON 2314 taught by Professor Showalter during the Spring '11 term at Texas State.

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Homework 2 Solution - Homework #2 Microeconomics Fall, 2011...

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