Terms
What is a place where buyers and sellers meet to exchange goods and services
Market
Find PED and state elasticity
% change in Price=5.2
% Change in Quantity=8.1
1.56
Elastic
Using a demand and supply diagram, draw how an increase in the price of hot dogs will impact hot dog buns.
S/D
Demand decreases
Draw on board
For explanations--must explain what happens to all components (S/D, P, Q) and why (2-3 Sentences)
EXPLAIN how a major earthquake in Wisconsin will affect the cheese market
a earthquake is a supply shock/natural disaster. This will cause a decrease in supply. Producers will produce less and their will be a shortage. As a result, they will raise prices. Q goes down and P goes up.
Externality
A good or service that people will buy less of when income rises
Inferior Good
Find PES based on Data and state elasticity
Percentage change in Quantity 11.2%
2018 Price $7, 2019 Price 7.89
.88
Inelastic
Fully label all components
Using a demand and supply diagram, draw how a subsidy on cotton producers in the United States, affects the cotton market
Subsidy diagram
draw
For explanations--must explain what happens to all components and why.
EXPLAIN how decreased financial regulation under President George W. Bush, will influence the social surplus.
If George W. Bush decreases the financial market, supply will increase because producers cost per input will decrease. This will allow them to produce more. S will increase. As a result the social surplus will increase
When people benefit from a good or service they do not contribute to
Free Rider Problem
Where MC=MB
Allocative Efficiency
Based on data, calculate the PED for United States Wheat in 2019 and state elasticity
Price
2018-1.5
2019-1.62
Quantity
2018-120 Million
2019-124 Million
.42
Inelastic
Fully label all components
Using a demand and supply diagram, draw how a price floor on Minimum wage affects the United States labor market.
PF
Draw
For explanations--must explain what happens to all components and why.
Explain the impact of New York imposing price ceilings on apartments for apartment owners (what will happen)
Apartment owners will have to charger a lower maximum amount then the equilibrium price. This will mean some will use their property for alternative uses. The QD will be greater then the QS of apartments and their will be a shortage of apartments.
Tax on demerit goods
Pigouvian Tax
% based tax on goods
Ad-Valorem Tax
Find YED and state type of good
Good X
Income
2018-100,000
2019-90,000
Quantity
2018-123
2019-134
-.89
Inferior Good
Fully Label all components
Using a demand and supply diagram, draw how a price ceiling on Vaccine testing in China, affects the price and availability of medicine
PC
Draw
For explanations--must explain what happens to all components and why
Explain how President Biden subsidizing Green energy will affect the price of green energy for consumers and producers
The price of goods for both consumers and producers will decrease as a result of a subsidy. Producers will charge less because supply will increase and will lower prices with the surplus of green energy tech they made
Using a demand and supply diagram, draw the impact of expectations that the price of medicine will rise in 6 months will impact pharmaceutical producers.
decrease in supply
S/D Graph
See board
Loss of total economic surplus
Deadweight loss/welfare loss
Assume your income goes from $90,000 to $150,000. Your YED of BMW's is 5.9. Calculate the % change in quantity demand.
393.33%
Fully label all components
Using a demand and supply diagram, draw how a tax on bullets in California affects the bullet market
Tax graph
For explanations--must explain what happens to all components and why.
Explain how Texas decreasing property taxes will impact government revenue
If Texas decreases taxes, there will be a overall welfare gain. However, the government will loose the revenue they gained from taxes. Revenue will decrease. Supply will increase, however.
Using a demand and supply diagram, draw how the increased fad for furries will impact the USA
Increase in demand
S/D
See board