ECN 205 Microeconomics
The figure below represents the market for corn, which is perfectly
competitive. Farmer Roy is a producer of corn in this market. Use the
information in the graph to describe the demand curve for Farmer Roy's
Suppose you win free tickets to a movie plus all you can eat at the snack bar for free. What
would be the cost to you to attend the movie? Explain.
The cost could be the time lost to do something else that I enjoy, or work that I miss by
attending the mov
For each of the following pairs of products, state which are complements, which are
substitutes, and which are unrelated. 10 points
a. Pepsi and Coke Subsitutes
b. Oscar Mayer hot dogs and Wonder hot dog buns Complements
c. Jiffy peanut butter and Smuc
1. Briefly explain why each of the following statements is true or false: 20 points
a. If the demand and supply for a product both increase, the equilibrium quantity of
the product must also increase. True because if only demand increases then supply
In our current economic climate many people are advocating that the United States should
only import those products that could not be produced here. Based on economic principles
covered so far, would be a good policy? Explain.
Based on Absolute Advantage
What do economists mean by scarcity? Can you think of anything that is not scarce
according to the economic definition?
Economic scarcity is the presumption that human wants are unlimited, but
resources are not. What this means is essentially that even if