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Questions for Supply and Demand Whiteboard Exercise

By Albert Carpenter,2014-11-09 12:45
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Questions for Supply and Demand Whiteboard Exercise

Questions for Supply and Demand Whiteboard Exercise

    1. Assume that the economy of the country of Alpha is experiencing increasing unemployment.

    Steak is considered a normal good in Alpha. Using the supply and demand graph illustrate the

    impact of the increasing unemployment on the market for steak in Alpha.

    2. Assume that the economy of the country of Alpha is experiencing increasing unemployment.

    Hamburger is considered an inferior good in Alpha. Using the supply and demand graph

    illustrate the impact of the increasing unemployment on the market for hamburger in Alpha.

    3. The country of Alpha experiences an increase in immigration that leads to an additional one

    million consumers. What will be the affect on this immigration on Grog the popular drink of

    Alpha. Illustrate the impact on price and output using a supply and demand graph.

    4. A plague has a devastating impact on the population of Alpha. Illustrate using a supply and

    demand graph how this will impact the market for chicken.

    5. The government of Alpha imposes a per-unit tax on Brureff soda. Given that Brureff has a

    relatively elastic demand, illustrate the impact of this tax on price and quantity using a supply

    and demand graph.

    6. The government of Alpha imposes a per-unit tax on Brureff soda. Given that Brureff soda has a

    perfectly inelastic demand, illustrate the impact of this tax on price and quantity using a supply

    and demand graph.

    7. Coffee and cream are complementary goods. An unexpected period of bad weather adversely

    affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad

    weather on the price and quantity of coffee.

    8. Coffee and cream are complementary goods. An unexpected period of bad weather adversely

    affects the coffee bean crop. Use a supply and demand graph to illustrate the affect of this bad

    weather on the price and quantity of cream.

    9. The two favorite juice drinks in the Alpha economy are reffberry and fruitbru. Consumers enjoy

    both drinks but some have a slight preference for reffberry while others have a slight preference

    for fruitbru. The makers of reffberry have invested in new technology that increases their

    productivity. This technology is not yet adaptable for the production of fruitbru. Use a supply

    and demand graph to illustrate the impact of the new technology on the reffberry market.

    10. The two favorite juice drinks in the Alpha economy are reffberry and fruitbru. Consumers enjoy

    both drinks but some have a slight preference for reffberry while others have a slight preference

    for fruitbru. The makers of reffberry have invested in new technology that increases their

    productivity. This technology is not yet adaptable for the production of fruitbru. Use a supply

    and demand graph to illustrate the impact of the new technology on the fruitbru market.

    11. Gasoline powered autos and electric powered autos are substitute goods and have relatively

    elastic demands. Assume that the price of gasoline increases by 30 percent. Use a supply and

    demand graph to illustrate the impact of this increase in the price of gasoline on the market for

    gasoline powered autos.

    12. Gasoline powered autos and electric powered autos are substitute goods and have relatively

    elastic demands. Assume that the price of gasoline increases by 30 percent. Use a supply and

    demand graph to illustrate the impact of this increase in the price of gasoline on the market for

    electric powered autos.

    13. A major news source reports an outbreak of salmonella affects the peanut butter snacks

    industry. Use a supply and demand graph to illustrate the immediate impact on price and

    quantity of this news

    14. In the past,the cost of Private University is $45,000 per year and the cost of State University is

    $17,000 per year. Both universities have a fixed number of seats available for the coming school

    year. Both schools have excellent academic reputations. A major recession occurs. Assume

    that both universities have tuition costs that are influenced by the number of applications they

    receive. Use a supply and demand graph to illustrate the impact of the recession on price and

    quantity for Private University.

    15. In the past, the cost of Private University is $45,000 per year and the cost of State University is

    $17,000 per year. Both universities have a fixed number of seats available for the coming school

    year. Both schools have excellent academic reputations. A major recession occurs. Assume

    that both universities have tuition costs that are influenced by the number of applications they

    receive. Use a supply and demand graph to illustrate the impact of the recession on price and

    quantity for State University.

    16. The domestic steel industry of Alpha competes with imported steel from the country of

    Tucumcari. Assume that the government of Tucumcari increases subsidies to its steel industry.

    Use a supply and demand graph to illustrate the impact of the subsidies on steel made in

    Tucumcari.

    17. The domestic steel industry competes with imported steel from the country of Tucumcari.

    Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply

    and demand graph to illustrate the impact of the subsidies on the price and quantity of steel

    made in Alpha.

    18. The domestic steel industry competes with imported steel from the country of Tucumcari.

    Assume that the government of Tucumcari increases subsidies to its steel industry. Use a supply

    and demand graph to illustrate the impact of the subsidies on the wage and quantity of workers

    in the market for steel workers in Alpha.

    19. The pork industry is dominated by large corporate farms that pollute the underground water

    table with waste material from the slaughter of pigs. The farms ignore this pollution. Use a

    supply and demand analysis to illustrate the impact of this avoidance on the pork industry.

    20. Assume that the favorite dating activity of teenagers is going out to dinner. The second favorite

    dating activity of teenagers is going out for ice cream. Assume that because of a recession there

    will be far fewer jobs available for teenagers this summer. Use a supply and demand graph to

    illustrate the impact of fewer jobs on the price and quantity of the typical dinner meal at a

    restaurant.

    21. Use a supply and demand graph to illustrate the effects on price and quantity of milk from the following simultaneous events:

    A. The cost of feed used for milking cows increases.

    B. A highly regarded scientific study reveals that drinking two glasses of milk a day helps to

    reduce weight.

    22. Use a supply and demand graph to illustrate the effects on price and quantity college enrollment from the following simultaneous events:

    A. The government provides additional money for college scholarships directly to high school

    seniors.

    B. Because of serious loss of value in their endowments, colleges reduce the number of faculty

    by an average of 20%.

    23. Use a supply and demand graph to illustrate the effects on the market price and quantity of steel from the following simultaneous events:

    A. The government provides health care insurance that reduces the cost of labor to industry.

    B A major project to renovated bridges increases the need for steel.

    24. Use a supply and demand graph to illustrate the effects on the market price and quantity of oil from the following simultaneous events:

    A. Alternative energy resources begin to provide 20% of energy needs to businesses and

    households.

    B. A tariff is imposed on imported oil.

    25. Use a supply and demand graph to illustrate the effects on the market price and quantity of bricked patios from the following simultaneous events:

    A. Masons take a 25% cut in pay

    B. Unemployment reaches 10%

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