Homework #3 problem #1 from Ch. 3, p. 71 of Case/Fair Principles… (6th ed.) problem #4 from Ch. 3, p. 79 of Krugman/Wells Microeconomics (1 st ed.) problem #7, a–c from Ch. 4, p. 98 of Case/Fair Principles… (6th ed.) and one of my own problems 1. Illustrate the following with supply and demand curves: a. In 2000, the economy expanded, increasing the demand for labor and pushing up wages. b. During the year 2000, cranberry growers produced an enormous crop; as a result the price fell from $55 a year earlier to $42. c. As more people bought home computers during the 1990s, the demand for access to the Internet increased sharply. At the same time, new companies like Erol’s began to enter the Internet-access market, competing with older more established services such as America Online. Despite a massive increase in demand, the price of access to the Web actually declined. d. Before economic reforms in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and
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