{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

assign2B - Intro Macro Section 4 Sheflin Spring 2009...

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

View Full Document Right Arrow Icon
Intro Macro Section 4 Sheflin Spring 2009 Assignment 2 B This is our first weekly supplementary assignment. You have to do the following: Read my explanations for Selected HW 2 Questions (in capitals) below Watch a 2 minute video clip Read the very brief news clip Review the BIG questions from assignment 2 Use the discussion boards to ask for help for anything you don’t understand. And then take an online hw quiz dealing with these 1. Explanations for the following HW 2 Questions (MY EXPLANATIONS IN CAPITALS) 6) The law of demand implies that if nothing else changes, there is 6) ______ _ A ) a linear relationship between price of a good and the quantity demanded. B) an exponential relationship between price of a good and the quantity demanded. C) a positive relationship between the price of a good and the quantity demanded. D ) a negative relationship between the price of a good and the quantity demanded. D - ‘LAW’ OF DEMAND – WHEN PRICE GOES UP, QUANTITY DEMANDED GOES DOWN. NOT REALLY A LAW, RATHER AN EMPIRICAL REGULARITY. A NEGATIVE RELATIONSHIP MEANS THAT WHEN ONE VARIABLE GOES UP, THE OTHER GOES DOWN 7) Which of the following influences people's buying plans and does not shift the demand curve? 7) ______ _ A ) the prices of related goods B) the price of the good C) preferences D ) income B THE QUANTITY OF ANY GOOD OR SERVICE PEOPLE DEMAND (WILLING AND ABLE TO BUY) DEPENDS ON PRICE, INCOME, TASTES, PRICES OF SUBSTITUTES AND COMPLEMENTS. OF THESE, A CHANGE IN PRICE MOVES ONE ALONG THE DEMAND CURVE (IN THE OPPOSITE DIRECTION OF THE PRICE CHANGE – THAT IS INVERSELY), WHILE A CHANGE IN ANY OF THE OTHERS SHIFTS THE WHOLE CURVE 12) A decrease in quantity demanded because of an increase in price is represented by a 12) _____ _ A ) movement up and to the left along the demand curve.
Background image of page 1

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

View Full Document Right Arrow Icon